REPORT OF THE PRESIDENT TO THE CONGRESS

ON FEDERAL POLICIES, BUDGETS, AND

TECHNICAL ACTIVITIES

IN

SEMICONDUCTORS

★ ★ ★

FIBER OPTICS

★ ★ ★

SUPERCONDUCTING MATERIALS &

★ ★ ★

ADVANCED MANUFACTURING

REPORT OF THE PRESIDENT TO THE CONGRESS 

ON FEDERAL POLICIES, BUDGETS, AND 

TECHNICAL ACTIVITIES 

IN

SEMICONDUCTORS, FIBER OPTICS,

SUPERCONDUCTING MATERIALS,

&

ADVANCED MANUFACTURING

Prepared by the

Technology Administration

U.S. Department of Commerce

Spring 1991

T able of C o n t e n t s

I. INTRODUCTION...................................................................................................................1

II. THE FEDERAL ROLE IN R & D ...........................................................................................1

A. Federal R&D Funding P olicy..........................................................................................1

B. Coordination of Federal R&D..........................................................................................2

C. Other Policies Affecting Technological Innovation....................................................2

1. Current Policy In itiativ es..........................................................................................4

a. Research and Experimentation Tax C re d it....................................................4

b. International C ooperation................................................................................4

c. Science and Technology Base............................................................................4

2. Other Related Policy Initiatives................................................................................4

3. Existing Policies to Encourage Innovation..............................................................5

D. Federal Technology Research Budgets: Fiscal Years 1988—1990............................5

1. Related Fiscal Year 1991 Budget Initiatives............................................................6

III. PRIVATE SECTOR'S ROLE IN INNOVATION........................................................... 6

IV. OVERVIEW OF TECHNOLOGIES

A. Semiconductors and Electronics Technologies..............................................................9

B. Fiber Optics and Optoelectronics Technologies............................................................ 10

C. Superconducting M aterial................................................................................................ 11

D. Advanced Manufacturing Technologies........................................................................12

V. CONCLUSION.....................................................................................................................13

VI. APPENDICES

1. Semiconductors and Electronic Technologies

1.1 Introduction .....................................................................................................14

1.2 Introduction to the Technical Issu e ...................................................................14

1.3 Funding Levels for Semiconductor Research and D evelopm ent 15

1.4 Department of Energy Semiconductor Program .............................................15

1.5 Department of Defense Semiconductor P rogram ...........................................15

1.6National Science Foundation Semiconductor P ro g ram ............................... 17

1.7 National Aeronautics and Space Administration (N A SA ).......................... 18

1.8 Department of Commerce Semiconductor Program.......................................19

in
VI. APPENDICES (continued)

2. Fiber Optics and Optoelectronic Technologies

2.1 Introduction...................................... ............................................................ 21

2.2 Introduction to Technical Issue...................................................................22

2.3 Procurement Policies................................................................................... 23

2.4 Funding Levels for Fiber Optic and Optoelectronic Research

and Development...................................................................................... 23

2.5 Department of Energy Fiber Optic Program...............................................24

2.6 Department of Defense Fiber Optic Program.............................................24

2.7 National Science Foundation Fiber Optics Program....................................25

2.8 Fiber Optics and Electro/Optics Programs at NASA..................................26

2.9 The Department of Commerce Optical Fiber Program .............................. 27

3. Superconducting Material

3.1 Low Temperature Superconductors —

Introduction to the Technical Issue......................................................... 28

3.2 High Temperature Superconductors —

Introduction to the Technical Issue.............................................................29

3.3 Funding Levels for Research and Development

in the Area of Superconducting Materials..................................................30

3.4 Department of Energy Superconductivity Program....................................30

3.5 Department of Defense Superconductivity Program..................................31

3.6 The National Science Foundation Superconductivity Program.................32

3.7 National Aeronautics and Space Administration

Superconducting Materials Program...........................................................33

3.8 Superconductor Research at the Department of Commerce.......................34

4. Advanced Manufacturing Technologies

4.1 Introduction ............................................................................................ 35

4.2 Introduction to the Technical Issue............................................................. 35

4.3 Funding Levels for Advanced Manufacturing

Research and Development........................................................................36

4.4 Department of Defense Advanced Manufacturing Program.....................36

4.5 Department of Commerce Advanced Manufacturing Program ..........38

IV
I. INTRODUCTION

The Omnibus Trade and Competitiveness Act 

of1988 mandated this report by the President to the 

Congress on policies and budget proposals regarding Federal research in semiconductors and 

semiconductor manufacturing technology, fiber 

optics and optoelectronic technology generally, 

superconducting materials, and advanced manufacturing technologies.

The Federal Government's role in research 

and development of technologies, like the four 

covered in this report, is evolving. For example, 

in December, 1989, the Administration published 

The National Action Plan on Superconductivity 

Research and Development (hereafter referred 

to as The Superconductivity Plan). This plan 

outlines the special steps that the Executive 

Branch will take to coordinate superconductivity activities. The President's FY 1991 budget 

request included a budget cross-cut of research 

and development on robotics, high performance 

computing, semiconductors, advanced imaging 

technologies, and superconductivity. These two 

documents — the President's Budget and the 

Superconductivity Plan — articulate the evolving government role in technologies through 

Federal funding of R&D, coordination of research 

activities, and creation of policies to ensure an 

economic environment in which firms can commercialize technologies developed by industry, 

universities, Federal laboratories, or other 

sources. This report reflects the logic of those 

two documents and adds a discussion of the 

management and organizational challenge to 

the private sector of these technologies, as well as 

a description of the program activities by Federal 

agencies in the four technologies.

II. THE FEDERAL ROLE IN R&D

The evolution of the four technologies covered in this report is today driven predominantly by commercial applications. Nonetheless, the Federal Government has an important 

role to play. The Superconductivity Plan cited 

three areas where there is a role for the Federal 

Government: R&D funding, coordination of 

R&D, and R&D-related policies.

A. Federal R&D Funding Policy

The President's fiscal year 1991 budget request includes the following comprehensive 

statement of R&D funding policy which bears 

directly on the issue of Government support for 

the four technologies covered in this report:

"T raditionally, the Federal Government has 

supported R&D in two areas, first, to meet its 

own direct needs-where it is the principal 

user (e.g., defense-related R&D)—and, second, to meet broader national needs (e.g., 

basic research in all areas, measurements 

and standards R&D, health-related R&D). In 

instances where the Federal Government is 

the ultimate market for the R&D results, 

R&D funding decisions must be made on the 

basis of Government needs and requirements. 

Thus, funding levels for defense R&D and 

civil space R&D activities are determined in 

the context of their respective national security and civil space objectives and requirements. The actual R&D activities, however, 

should be managed in such a way as to 

encourage commercial applications of the 

R&D as well. The second category of R&D, 

for which the Government is not the principal market, includes both basic research and 

generic applied research. Federal investment in such R&D is warranted to capture 

the public good benefit. The Administration 

believes that Federal support for this type of 

R&D should be based on several fundamental criteria:

o there should be "externalities" associated with the R&D (e.g., pollution cleanup, basic research);

o there should be benefits to broad segments of the economy simultaneously 

(e.g., health research, agricultural research); and

o the private sector is without sufficient 

incentives to capture enough of the benefits to make such R&D investments 

worthwhile. In such cases there should 

be private support (e.g. joint ventures or 

cost-sharing) commensurate with the expected benefits to the private parties."
R eport of the P resid en t to the C o n g r e ss o n Federal P olicies, B udg ets, a n d T ech nical A ctivities in

Federal agencies fund R&D to meet their own 

direct needs where they are the principal user. In 

other cases, Federal support is for pre-competitive 

research that meets all the criteria established for 

direct Federal funding, specifically, that the research is in the interest of the public welfare and 

the private sector is unable to capture sufficient 

benefits to make private investment economic.

Most research necessary for technological 

advance, however, is funded by the private sector 

and is not pre-competitive. Firms may be unwilling to share their research results with their 

competitors, and they may be able to protect 

their technology from unauthorized use through 

patents or other intellectual property protection. 

Nonetheless, firms may still want to cooperate 

with some competitors or with their suppliers or 

customers in order to share the costs and risks of 

developing a new product or process. The Federal 

Government has other policies to foster such 

private sector cooperation, in particular, the 

policies that reduce the antitrust uncertainties 

regarding R&D joint ventures.

B. Coordination of Federal R&D

The Federal Government can play an important coordinating role in technologies in which 

several Federal agencies actively fund R&D to 

meet their own direct needs as well as to meet 

broader national needs. In exercising its coordinating role for technologies with broad commercial application, however, the Government 

needs to be careful about imposing its own 

judgments about competing technical alternatives. For example, the Government's programmatic needs may represent only a small 

and specialized segment of the potential market 

for a technology. Federal policies must also 

respect the prudence of taking diverse approaches to the same goal.

The Superconductivity Plan establishes a 

coordinating role for the Office of Science and 

Technology Policy (OSTP). OSTP will provide 

leadership in the national superconductivity effort. The OSTP Director will work to assure that 

all parts of the Government program form a 

coherent whole, well balanced between basic 

and applied research. Also, the National Commission on Superconductivity plans to publish a 

report containing its assessment and recommendations for a Federal approach to superconductivity.

OSTP, through the Federal Coordinating 

Council for Science, Engineering and Technology (FCCSET), is considering a similar role for 

the other three technologies in this report— 

semiconductors, fiber optics and opto-electronics, 

and advanced manufacturing. Such a coordinating role will aid the early R&D stages of the 

innovation process, when corporate proprietary 

interests are at a minimum.

The government can also act as a catalyst in 

bringing together the expertise of the Federally 

funded laboratories, universities, and industry 

in partnership for the creation of new technology. 

Where the technology has potential impact on 

several industries, this coordinating role can also 

help the private sector organize itself for timely 

utilization of the technology. As The Superconductivity Plan notes, "This new catalytic role 

derives from the very nature of this technology."

The Nation's success in commercializing 

technologies ultimately depends on the private 

sector to make the critical decisions on how 

much capital, time, and effort to invest. The 

Government's ability to help coordinate appropriate R&D at pre-competitive stages will be 

enhanced by private sector leadership in organizing itself for effective teamwork. Without 

private sector initiative, government involvement 

in the process risks introducing time delays and 

weakening incentives for firms to commercialize 

the technology. In addition, where Government 

funding focuses on pre-competitive technology, 

domestic firms that are actively involved in the 

process will be able to exploit it sooner and more 

effectively. At present, it appears that domestic 

firms have shown less interest in acquiring technologies supported by Federal funds than foreign 

firms.

C. Other Policies Affecting Technological

Innovation

In addition to its responsibilities in the funding and conduct of Federal R&D programs, the 

Government has continuing responsibility for

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fostering an economic and business climate that 

will remove unnecessary obstacles to the commercialization of technologies. Government 

policies affecting technological innovation are 

mainly generic rather than technology specific, 

because they are intended to encourage innovation in a broad range of areas. Technologies 

are so dynamic that it is difficult, especially for 

non-commercial parties, to predict in advance 

which ones will succeed. Even for the application, there are sometimes competing technologies. For example, there is competition among 

advanced materials—composites, advanced ceramics, and polymers—to perform the same 

functions. A specific example is the battle over 

the relative merits of, and trade-offs among, 

silicon, gallium arsenide, and diamond material 

for certain uses of semiconductors.

1. Current Policy Initiatives: Several policy 

initiatives under current consideration would 

foster a conducive economic environment for 

technological innovation. Appropriate action 

on these policy initiatives would provide a basis 

for consistent and stable research in the private 

sector by reducing the inherent risks and uncertainties in these activities, promoting the exchange of information across national boundaries, providing consistent Government R&D 

support, and protecting the environment. These 

initiatives include:

a. Research and Experimentation Tax Credit: 

Administration initiatives in support of tax credit 

law reform will aid the commercialization of 

technologies. The President has proposed 

changes to the present tax credit to encourage 

U.S. industry to invest in long-term research. 

The changes include making the R&E tax credit 

permanent, thereby providing some degree of 

certainty in making long-term resource commitments; extending the credit to cover expenditures 

by startup firms, which will help encourage 

venture capital investment in these enterprises; 

and establishing a two-tier structure for the tax 

credit, thus encouraging both rapid growth in 

R&D expenditures as well as sustained commitments.

b. International Cooperation: It is difficult, if 

not impossible, for a single firm to be technologically self-sufficient. Some analysts believe selfsufficiency is impractical even for a single nation. 

While the normal functioning of science bodies 

provides for information exchange among scientific investigators, it is appropriate for the U.S. 

Government to foster that exchange by establishing close contact with basic research efforts 

in the rest of the world, particularly Japan and 

Europe. The U.S.-Japan Agreement in Cooperation in Science and Technology, for example, 

provides a framework for new relationships for 

cooperation on research and development in 

coming years. The Agreement includes provisions to establish a balanced and equitable 

partnership in joint undertakings, to assure 

comparable access to facilities and activities 

supported or sponsored by the government, and 

to provide for adequate and effective protection 

of intellectual property rights. The Federal 

government, through a variety of programs, is 

encouraging U.S. scientists and engineers to 

participate in R&D efforts in Japan and to take 

Japanese language training.

c. Science and Technology Base: Developing 

and maintaining a science and technology base is 

vital to the future of our Nation. In order to 

maintain this base, steady, predictable support is 

needed. A more stable research environment 

would be created by multi-year authorizations 

and two-year appropriations cycles. Such an 

approach would help researchers devote more 

of their time to research, and less of their time to 

satisfying paperwork requirements. The public 

and private sectors should work cooperatively 

in both basic and applied research, each pursuing their legitimate goals. This cooperation will, 

if successful, shorten the cycle of innovation. A 

shortened innovation cycle would allow earlier 

market entry which is a major factor in competing 

in international markets.

2. Other Related Policy Initiatives: In addition to 

these five initiatives, President Bush announced 

his support for legislation to reduce the antitrust 

uncertainty that may unnecessarily discourage 

some joint production ventures and to reform 

our cumbersome and expensive product liability system. Also, the Administration will encourage the conduct of R&D by transnational 

companies by proposing to make permanent the

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R eport of the P resid en t to the C o n g r e ss o n Federal P olicies, B udg ets, a n d T ech nical A ctivities in

rules for allocation by such companies of R&D 

expenditures and will propose changes in those 

rules.

3. Existing Policies to Encourage Innovation: A 

number of legislative and executive actions either 

directly or indirectly affect the climate for the 

development and commercialization of 

technology. These are:

o The President's Superconductivity Initiative (1987)—an eleven point directive 

to bring focus to the Federal actions in 

support of superconductivity, some of 

which, like the proposal to expand the 

National Cooperative Research Act of 

1984 to include some types of joint production ventures, would apply to all 

technologies.

o The National Superconductivity and 

Competitiveness Act of 1988—directs a 

number of actions related to the development and commercialization of superconductivity.

o The Omnibus Trade and Competitiveness Act of 1988—a wide ranging law 

which includes among many other things 

provisions for the oversight of superconductivity and semiconductors and to 

strengthen generally the contribution of 

technology to competitiveness.

o The Federal Technology Transfer Act 

(1986) amending the Stevenson-Wvlder 

Act (1980): Executive Order 12591 (1982) 

Facilitating Access to Science and Technology: The University and Small Business Patent Procedure Act (1980) 

(amended by the Trademark Clarification Act (1984): and The National Competitiveness Technology Transfer Act 

(1989)—which taken together constitute 

a system to encourage the commercialization of Federally-funded research.

o The National Cooperative Research Act 

of 1984: the Antitrust Enforcement 

Guidelines for International Operations 

(1988): and the proposed Cooperative 

Production Act of 1990—reduces the 

uncertainty related tocollaborativeR&D,

and potentially joint manufacturing, by 

groups of companies, whichshould have 

procompetitive benefits as markets become increasingly globalized.

o The Small Business Innovation Development Act (1982)—established the Small 

Business Innovation Research (SBIR) 

program to provide seed funding to 

launch innovations which have shortterm prospects for commercialization.

o The Title V Report (1989): The OECD 

General Framework of Principles for International Cooperation in Science and 

Technology (1988): and the Head of State 

Agreement for Science and Technology 

Cooperation (1988)—established a 

framework for equitable, balanced international technology cooperation including protection of intellectual property.

o The Council on Competitiveness (1989) 

and The Economic Policy Council Working Group on Research, Development. 

Technology and Innovation (1989)—led 

by the Vice President and Secretary of 

Commerce respectively, these two 

mechanisms were established by President Bush to improve competitiveness 

and technological innovation.

o The Science and Technology Centers 

Program (1989): The Regional Centers 

for the Transfer of Manufacturing Technology (1988): and The Engineering Research Centers Program (1985)—have 

created twenty-eight university-based 

centers to develop new knowledge and 

to transfer advanced technology to industry.

o Department of Defense Funding for 

SEMATECH and the National Center for 

Manufacturing Sciences—encourage 

privatesector-led cooperativeapproaches 

to semiconductor manufacturing technology and advanced manufacturing 

technology.

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S em ic o n d u c to r s, Fiber O ptics, S uper c o n d u c tin g M aterials, a n d A d v a n c e d M anu fa c tu r in g

fi e Ç\ c í e flep c n f S o

D. Federal Technology Research Budgets: Fiscal 

Years 1988 through 1990: The following tables 

summarizing Federal funding for R&D for the four 

technologies, by agency, for fiscal years 1988through 

1990. The budget data collected for this report were 

based on a unique set of definitions, a unique 

process for data collection, and on the budget projections during the 1989 fiscal year. For this reason 

these numbers do not track with, nor should they 

be compared to, the budget crosscuts prepared for 

subsequent budgets. Funding for research for fiber 

optics (and photonics generally), superconducting 

materials, and advanced manufacturing R&D show 

steady growth.

TABLE 1. Funding of semiconductor, fiber optics, superconducting materials, and advanced

manufacturing research and development (dollars in millions) by agency:

Agency 1988 1989 1990

Semiconductor R&D

Energy 48 48 48

Defense 404 416 423

NSF 32 34 36

NASA 3 4 4

Commerce 3 3 3

Semiconductor Total $490 $505 $514

Fiber Optic and Optoelectronic R&D

Energy 9 10 10

Defense 80 118 116

NSF 13 14 16

NASA 7 4 4

Commerce 2 2 5

Fiber Optic Total $111 $148 $151

Superconducting Materials R&D

Energy 69 138 165

Defense 60 73 72

NSF 20 26 29

NASA 4 6 6

Commerce 3 3 4

Superconducting Total $156 $246 $276

Advanced Manufacturing R&D

Defense 154 170 173

Commerce 3 3 3

Advanced Manufacturing Total $157 $173 $176

Note: The budget numbers shown in the table for advanced manufacturingdo not indude funding for robotics, 

and therefore do not show several agencies which have budgets in that area. The President's FY1991 budget 

request contains a complete crosscut on robotics funding.

The budget data collected for this report were based on a unique set of definitions, a unique process for data 

collection, and on the budget projections during the1989 fiscal year. For this reason these numbers do not track 

with, nor should they be compared to, the budget crosscuts which havebeen prepared for subsequent budgets.

A description of the Federal programs for each technology, by agency, is included in the Appendices.

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R ep o r t o f t h e P r e s id e n t t o t h e C o n g r e s s o n F e d er a l P ouches, B u d g e t s, a n d T e c h n ic a l A c t iv it ie s i n

It is important to note that the agency programs are responsive to agency missions. In the 

case of program agencies like Defense, this often 

translates into support for specialized needs 

which would not be met by industry in the 

normal course of business. These budget figures 

and the programs which they represent should 

not be viewed as comprehensive or integrated 

R&D strategies for the technologies. However, 

agency programs are designed by scientists and 

engineers with an awareness of work being done 

by others. Also, there is increasing interaction 

between government laboratories and the private 

sector. Currently, there are more than 500 cooperative agreements in effect which are encouraged by the Federal Technology Transfer 

Act of 1986, Executive Order 12591 (1987), and 

the National Competitiveness Technology 

Transfer Act (1989). These include the Department of Energy's Superconductivity Pilot Program which is partially supported by the private 

sector.

1. Related Fiscal Y ear 1991 Bud get Initiatives: The 

President's current technology budget crosscut 

was a one-time survey that covered a different 

set of technologies than those in this report. 

Where similar technologies were included, the 

R&D crosscut and this report generally used 

different definitions. The numbers, therefore, 

are not comparable with the figures in this report.

The proposed FY1991 R&D expenditures for 

related crosscut technologies were $537 million 

for semiconductor technology, $215 million for 

superconductivity, $469 million for high-performance computing, $118 million for advanced 

imaging technologies whose reporting excluded 

most fiber-optic and optoelectronic R&D), and 

$192 million for robotics (which is excluded from 

the current report's definition of advanced 

manufacturing technology). These amounts reflect percentage increases over estimated FY 1990 

spending of 2 percent for semiconductors, 5 

percent for high-performance computing, and 

28 percent for robotics. No change in spending 

for advanced imaging technologies was proposed. The proposal included a 6 percent drop in 

R&D funding for superconductivity due to the 

progress of the Superconducting Super Collider 

(SSC) magnet from research into prototype production which is reflected as a $100 million increase (or 46 percent) in the SSC budget.

The 1991 budget request included funds for 

two programs at the Department of Commerce's 

National Institute of Standards and Technology 

to encourage the development and transfer to 

the private sector of a wide range of advanced 

technologies. The budget proposed $10 million 

for the new Advanced Technology Program 

(ATP) to support a number of ventures doing 

generic, pre-competitive research in promising 

technologies. The budget also proposed $5 

million for grants to the Regional Manufacturing 

Technology Centers that will transfer advanced 

manufacturing technologies to medium and 

small-sized businesses.

The budget request also included an increase 

of $222 million (or 26 percent) for science and 

engineering education in five agencies.

III. PRIVATESECTOR’SROLE IN INNOVATION

The private sector has the principal role in 

innovation and in identifying and utilizing 

technologies for commercial products and processes. Even in meeting the Government's own 

direct needs, the Government relies principally 

on the private sector to undertake the development process and encourages these activities to 

be managed in such a way as to allow commercial applications of the R&D as well. The Federal 

Government and the private sector share the 

responsibility for supporting appropriate precompetitive research on generic enabling technologies. However, the Administration believes 

that it is not an appropriate role for the Federal 

Government to develop specific commercial 

products whether they are based on technologies developed with Federal R&D support or 

not. Moreover, where appropriate the private 

sector must take an active role in directing innovation process from the outset to ensure that 

R&D fits market needs. As stated in the back-

"The multidisciplinary nature of the technology and the fact that the benefits from 

commercialization will accrue over such a 

long term may make it difficult for individual

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S em ic o n d u c to r s, Fiber O ptics, S u per c o n d u c tin g M aterials, a n d A d v a n c e d M anu fa c tu r in g

firms to justify capitalizing the basic R&D 

expenses required for commercialization. 

Generic technical advances cut across industrial sectors and markets. With fierce 

international competition, time will be critical in transferring the technology into marketable products—with successful commercializationdependentonconcurrentresearch, 

design, manufacturing, and marketing....

"Because of the time pressure for concurrent effort across the spectrum from research 

to applications, and the diversity of industries 

involved, the management challenge is great. 

The Nation's success in commercializing superconductivity ultimately depends on the 

private sector, which must make the critical 

decisions on how much capital, time, and 

effort to invest."

The firm that can be first to the market with 

new products based on developments in one of 

these areas can reap major commercial rewards. 

Innovation and commercialization have become 

time critical. Time criticality, combined with 

high cost and long lead-time, technical complexity, and the potential for multiple uses in 

many industries, may have important implications for the management of innovation. In 

many high-technology areas:

o Technological advances may not be specific to one industry;

o Existing products and technologies are 

made obsolete before their useful life is 

over, as firms shorten product life cycles 

to compete in international markets;

o Increasingly the private sector has to 

identify specific products to meet specific 

market opportunities before undertaking R&D;

o Successful and timely innovation may 

require the capabilities of many firms 

from different industries and other organizations combined in coordinated, concurrent efforts.

o Returns on expensive investments in generic enabling technologies by firms often can only be maximized — and in

some cases investments may only be recouped — if the results are used in several applications, often in different industries.

Different firms address these innovation and 

commercialization challenges differently. Some 

firms view the traditional linear, sequential innovation management practice as the best formula. Some other firms have begun to look at 

alternative forms of innovation. One alternative 

that is receiving increased attention is a systems 

management approach that integrates the innovation and commercialization stages. These two 

approaches are illustrated in Figure 1 for optoelectronics devices.

In the sequential model, R&D precedes 

product design. After product design, manufacturing processes are established at which point 

the product is marketed. Through marketing, 

the firm begins to receive feedback from current 

and/or potential users and redesign of the 

product or design of the next generation of 

products begins. Under this model, the firm 

often approaches a single application at a time, 

rather than looking simultaneously at multiple 

applications.

Using the systems approach in the optoelectronics device example, a firm would simultaneously work on chip design, materials, processing technology, and manufacturing equipment in conjunction with its suppliers. At the 

same time, the firm would work with multiple 

applications and users. Suppliers and users — 

whether internal or external to the firm—become 

"stakeholders" in the commercialization process.

In a systems approach, the firm may undertake a multi-industry, multifirm joint venture of 

noncompetiting firms to develop, manufacture, 

and use the new productfs). The systems approach will allow initial design input from the 

several users, planned parallel tracks of R&D, 

parallel development of applications in conjunction with the R&D, and early and simultaneous entry into many markets. Some American 

firms such as Xerox, AT&T, Motorola, and 

Hewlett-Packard which have switched to this 

model of managing innovation inside the firm, 

have created new products in approximately

— 7 —
Innovation & Commercialization Project Models

Traditional Sequential Model

Office

Equipment Mainframe Computers, Manufacturing Work Stations, and PCs

Processes

Manufacture Satellite

Chip Design Communications

Instruments

Telecommunications and

Telecommunications Equipment

Semiconductor

Manufac. Equip.

Applications

Management Model

j ; j : MahaigeiTieht Toàrii:: j : ;

!&D; PérforiTiérs, : Manufacturers, land Users

Office

Equipment

Chip Design

Aerospace and

Defense

Instruments

Next Generation of

Innovations

Manufacture

Satellite

Manufacturing Communications

Processes

Mainframe Computers,

Work Stations, and PCs

Telecommunications and

Telecommunications Equipment Semiconductor

Manufac. Equip.

Figure 1.
S e m ic o n d u c t o r s, Fiber O pt ic s, S u p e r c o n d u c t in g M a t e r ia l s, a n d A d v a n c e d M a n u f a c t u r in g

half the time and at half the cost of those using 

the sequential model. This approach allows the 

developmental costs to be shared-by all the 

stakeholders. Also, the users represent an initial 

market for the product, potentially allowing the 

producer to achieve economies of scale and price 

competitiveness more rapidly. In short, it can 

reduce risk for all members of the joint venture. 

This approach may offer a means for firms to 

collaborate where large investments associated 

with high-technology products may exceed individual firm resources.

Many American firms are unfamiliar with 

this systems model. Although it is commonly 

associated in the U.S. only with single application, 

government-led, defense and space projects, it is 

being used by many foreign firms for multiple 

application, private sector-led, innovation efforts 

aimed primarily at commercial markets.

IV. OVERVIEW OF TECHNOLOGIES

A. Sem iconductors an d Electronics 

Technologies

Semiconductors are the basic component of 

the electronics Industry. They are integral to the 

electronic systems which make possible parts of 

the nation's defense, communication systems, 

transportation, medical care, banking, manufacturing, etc. The world market for semiconductor 

devices is $50 billion and for semiconductor 

manufacturing, test, and assembly equipment is 

$8.6 billion. U.S. production of semiconductor 

devices was $20 billion in 1988 and is presently 

growing at 8 percent annually. U.S. production 

of semiconductor production equipment was 

$3.8 billion in 1988.

Advanced semiconductor technology is 

evolving toward even more complex semiconductor devices with smaller feature sizes. The 

evolving technology is resulting in changes in 

processing and quality control, in materials technology, in device design, and in packaging, especially:

o Improvements in processing and quality 

control necessary for new processing 

technologies like x-ray lithography,

o Greater materials purity required as the 

feature sizes of integrated circuits are 

reduced,

o Better computer models for predicting 

the solid-state effects of the boundaries of 

regions within the devices, and

o Better ways of dealing with heat dissipation.

Five agencies carry out selected research and 

development programs in the general area of 

semiconductor technology to meet their specific 

missions.

The Department of Energy carries out research on semiconductors and semiconductor 

manufacturing technology which are important 

to several of its missions including solar energy, 

the weapons program, basic energy sciences research, and high energy physics research.

The Department of Defense programs focus on many special manufacturing problems, 

one of the most important of which involves 

microcircuit reliability in hostile (i.e., combat) 

environments. SEMATECH, an industry consortium to rebuild U.S. excellence in semiconductor manufacturing, was established. It will 

spend $250 million per year for a minimum of 

five years and is funded by 14 member companies, the U.S. Government through the Department of Defense, and the State of Texas.

The National Aeronautics and Space Administration addresses problems unique to its 

mission. For example, the objective of its gallium 

arsenide (GaAs) technology development program is to develop GaAs digital integrated circuit 

technology for its unique, high data rate, signal 

processing applications such as: robotic vision, 

high resolution imagery spectrum and the 

geodynamic laser ranging system instruments.

The Semiconductor Metrology Program in 

the Department of Commerce's National Institute of Standards and Technology provides 

needed generic measurement methods and services, national reference standards, carefully 

evaluated reference data, and technical consultation on measurement technology and theory. 

These support research, development, and

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manufacturing; promote equity in domestic and 

international markets; and aid international 

competitiveness of the Nation's manufacturers 

and users of semiconductor materials, fabrication 

equipment, and devices.

The National Science Foundation provides 

funding to universities to conduct basic research 

and to train students in the field of semiconductor 

technology. Among the research areas supported 

are packaging materials technology, dielectrics, 

silicon technology and devices, compound semiconductor technology and devices, device processing techniques, and integrated electronics.

B. Fiber Optics and Optoelectronics

Technologies

Photonics is the name given to the generation, control and use of photons (light); it is the 

optical analog of electronics. Photonic or electrooptic devices and systems can have a large 

bandwidth which means that huge amounts of 

data can be quickly switched and transmitted.

Photonic devices could replace many electronic devices but are currently not nearly as 

well developed or cost-effective. The main commercial applications for photonics are for information transmission and optical sensing. A third, 

optical computing, is in the exploratory stage.

Photonic-based systems are becoming the 

system of choice for many high-data-rate uses 

like long distance telephone and data networks. 

Even such short-haul uses as communication 

between racks of equipment in a large switching 

system or computer and between components of 

in-home high fidelity stereo systems are being 

taken over by photonic systems.

A photonic information transmission system 

has three basic components: an electro-optic 

input device, a transmission medium and an 

electro-optic output device. While the transmission technology is mature, advances in the technology used in electro-optic input and output 

devices can be important to key devices proposed 

for high definition television receivers and for 

many advanced displays.

The high speed and high noise immunity of 

photonic systems make them a natural consideration for computing applications. Several basic 

devices necessary for a completely photon-based 

system are either not yet available, or are not 

cost-effective. However, many laboratories 

worldwide have strong R&D efforts on photonic 

computer devices and components.

The world market for optical fiber communication systems components reached $3.2 billion 

per year in 1989 and has been growing at about 

25 percent per year. The world market for systems is considerably greater. For example, the 

worldwide investment in undersea lines alone is 

expected to reach $8.5 billion for the eight-year 

period 1988-1996.

Five agencies carry out selected research and 

development programs in the general area of 

fiber optics and optoelectronic technologies to 

meet their specific missions.

The Department of Energy conducts research under its weapons program which includes the synthesis, characterization and processing of glasses; investigations of non-linear 

optical properties of materials; and the effects of 

impurities on the optical properties of disordered 

materials. The goals are to improve the performance of these materials for use as components 

in diagnostic instrumentation to do real-time 

monitoring of complex experiments for weapons testing.

The Department of Defense's programs are 

aimed primarily at the proliferation of defense 

systems which will rely on fiber optics in the next 

decade. Today's fiber optics research will provide 

ships, aircraft, and undersea communications 

with higher bandwidth capabilities at lower cost 

than metallic cable approaches. In addition, 

fiber optical sensors will provide a new class of 

gyroscopes as well as acoustic, magnetic sensors 

for inertial navigation and antisubmarine warfare.

The National Science Foundation supports 

university research efforts in optical fiber technology for communications, sensing, and 

switching applications; a number of academic 

research projects on optical phenomena for applications in optical computing, processing, logic, 

displays, imaging, and others; and on semiconductor devices that exhibit photoelectric or op-

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toelectronic properties. This support is intended 

to advance the basic science and to educate students in electro-optic technology.

The National Aeronautics and Space Administration has several programs in fiber-optic 

and electro-optics research and development for 

applications in space and aeronautics.

The Department of Commerce's R&D program, which is carried out in the laboratories of 

NIST, provides the base of consistent physical 

measurements and standards required to support the development and utilization of optical 

fiber telecommunications. In addition, the program encompasses the measurement of the 

special characteristics of fibers used for sensors 

and evaluation of prototype sensors for current, 

voltage, magnetic field, and other quantities.

C. Superconducting Material

Superconductivity is a material property 

characterized by zero electrical resistance and 

other related phenomena. One of the most significant scientific breakthroughs of recent decades, the achievement of high temperature superconductivity, was made in 1986, when ceramics, based on perovskite systems, were found 

to exhibit superconductivity at temperatures 

which were significantly higher than was ever 

observed in earlier work. Because superconductivity has the potential for application in a wide 

variety of products, it has attracted a great deal of 

interest.

The most notable commercial success to date 

is the magnet used for Magnetic Resonance Imaging (MRI), which with other medical applications of superconductivity have great market 

potential.

The development of high energy particle 

accelerators has led to the construction of many 

large and successful superconducting bending 

and focusing magnets. The Tevatron, at the 

Fermi Laboratory, features a ring of superconducting magnets 5 km in circumference. The 

Superconducting Super Collider (SSC) will be 

similar but ten times bigger. Perhaps the most 

significant potential application of large superconducting magnets is to controlled thermonuclear fusion.

In the electric power industry, superconducting magnetic energy storage (SMES) is a 

potential near term application of superconductivity with important economic benefits.

Five agencies carry out selected research and 

development programs in the general area of superconductivity to meet their specific missions. 

The Department of Energy carries out research and 

development on high temperaturesuperconductors 

primarily in support of three program missions: 

Basic Energy Sciences, Conservation and Renewable Energy, and Defense Programs. The 

Department's research program in low-temperaturesuperconductivity is needed primarily because 

superconducting magnets are required to advance 

the performance of expensive experimental devices 

utilized in magnetic fusion energy and high energy 

and nuclear physics.

The Department of Defense's program in 

high temperature superconductivity involves 

synthesis, processing and fabrication of materials; pre-commercial manufacturing science issues; and conceptual device development. Largescale, low-temperature superconductivity technology is relatively mature, but there has been 

only modest application in military systems. 

Research and development is continuing to 

support such applications as sensors, analog 

electronics, digital electronics, electric 

drivesystems for ships (and possibly land vehicles 

and aircraft), electric generators, electric energy 

storage systems for directed energy weapons, and 

directed energy weapons.

The National Science Foundation supports 

research in universities to bring a wide variety of 

experimental techniques to the study of new hightemperature superconductors; to bring experience 

in chemistry to the synthesis of solid state oxide 

superconductors; to understand bulk properties, 

thin films, and superconducting devices; to understand physical limitations of superconductors 

such as critical temperatures and fields; to understand metallic and structural behavior of superconductors and the microscopic behavior of superconducting properties; to expand knowledge of 

superconductor processing, modification, and 

synthesis and characterization of superconducting 

ceramic oxides; and to apply both low-temperature 

and high-temperature superconductors.
R eport of the P r esid en t t o the C o n g r ess o n Federal P olicies, B u dg ets, a n d T ech nical A ctivities in

The National Aeronautics and Space Administration has instituted a program in hightemperature superconductivity for applications 

in space and aeronautics. The high-temperature 

superconductor program includes benefit studies of typical aerospace applications. The research 

is directed at characterization of new high-temperature superconducting materials for unique 

aeronautics and space applications including 

the effects of vacuum and space radiation.

The Department of Commerce (NIST) provides measurement technology and data in superconductor electrical and mechanical properties, composition and structure analysis, processes, and superconducting electronics. Earlier 

work in superconducting electronics has led to 

the national standard for voltage being based on 

the performance of superconducting devices.

D. Advanced Manufacturing Technologies

Historically, design, manufacturing, and 

measurement have been separate processes. 

Conceptually, a designer would design a system 

and reduce its individual parts to drawings, or 

blueprints, to communicate the essential features of the design to the machinist who would 

make the parts. The machinist would cut a part 

on a milling machine, stopping periodically to 

check dimensions with calipers and gauges. As 

manufacturing techniques became more and 

more efficient, the measurement process consumed an ever-greater percentage of the total 

work required to produce a part. In addition, 

retooling to respond to design changes became 

increasingly expensive.

The development of modem computer systems has stimulated the beginning of a fundamental change in the manufacturing process 

which affects the design, fabrication, and the 

measurement of the part. This change, which has 

been called "concurrent engineering" is, in its 

simplest terms, the development of the product 

and its manufacturing, quality control, distribution, and repair process simultaneously. For a 

selected application in the Department of 

Defense's acquisition of a weapons system, it has 

been estimated that concurrent engineering produced reductions of 50 percent in the number of

engineering design changes, 40 to 60 percent in 

the manufacturing costs, and 75 percent in the 

scrap and re-work of manufactured products. 

This last effect is particularly significant because 

some surveys have shown that, in the U.S., onethird of the work force in manufacturing industries is engaged in re-work; that is, correcting 

out-of-tolerance parts made by the other twothirds.

Two agencies carry out selected research and 

development programs in the general area of 

advanced manufacturing to meet their specific 

missions. The Department of Defense's primary 

goal in its research and development programs 

in advanced manufacturing is to improve the 

productivity and responsiveness of the defense 

industrial base. The primary Department of 

Defense program in this area is its MANTECH 

program. While the Department of Defense 

funds R&D in advanced technology, the contractors are normally expected to invest in the 

capital equipment necessary to implement that 

technology.

The Department of Commerce (NIST) has

two principal goals for its advanced manufacturing program. One is to supply U.S. industry 

with this radically new way of making precisely 

machined parts with dimensions that can be 

referenced to national measurement standards 

which are maintained at the NIST. The second is 

to support the modernization of American 

manufacturing by providing the technical information necessary to develop standardized interfaces between various types of equipment. NIST 

is also using its laboratories as a test bed for 

research on the next generation of knowledgebased manufacturing systems and is carrying 

out technology transfer activities in the area of 

advanced manufacturing.
S e m ic o n d u c t o r s, F iber O pt ic s, S u p e r c o n d u c t in g M a t e r ia l s, a n d A d v a n c e d M a n u f a c t u r in g

V. CONCLUSION

The Administration continues to support 

R&D to meet direct Government needs as well as 

research on pre-competitive enabling technologies in most current high-technology areas, including semiconductor, opto-electronics and fiber optics, superconducting materials, and advanced manufacturing. The Administration's 

policies with respect to technological innovation 

identify appropriate roles for the Government 

and for the private sector.

Traditionally, the Federal Government has 

supported R&D for two reasons, as stated in the 

President's FY1991 Budget: first, to meet its own 

direct needs—where it is the principal consumer 

— such as defense and civilian space R&D; and 

second, to meet broader national needs such as 

new and better means of diagnosis and treatment 

of disease, agricultural productivity, and pollution clean-up.

In the first case, where the Federal Government is the ultimate consumer for the R&D results, funding levels and decisions are made on 

the basis of Government programmatic objectives, needs and requirements. The Government 

relies principally on the private sector to undertake the development process and encourages these activities to be managed in such a way 

as to allow commercial applications of the R&D 

as well.

The second category of R&D requires Federal 

support in the interests of public welfare where 

the private sector is unable to capture sufficient 

benefits to make private R&D investments economic. Federal support of fundamental scientific 

research is the prototypical, essential investment 

in the Nation's scientific and technological future. 

This fundamental research is a necessary part of 

the knowledge base required for the Federal 

Government to meet its own direct needs and 

objectives in the future and for the private sector 

to create new products and processes.

However, the Administration believes that it 

is not an appropriate role for the Federal Government to develop specific commercial products, 

even where based on technologies developed 

with Federal R&D support. Commercial decisions are best left to the private sector. The

private sector must take an active role in directing the innovation process from the outset to 

ensure that R&D fits market needs. New alternatives such as systems management may offer 

a means for firms to share costs and risks where 

large investment associated with high-technology products may exceed individual firm resources and to manage the innovation process 

more efficiently.

The Administration is undertaking continuing efforts to improve coordination of Federal 

R&D funding and improve the environment for 

innovation and development of commercial 

products by the private sector, including, inter 

alia, the Administration's proposal to make the 

research and experimentation tax credit permanent.

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VI. APPENDICES

1. Semiconductors and Electronic 

Technologies

1.1 Introduction

Semiconductor products are critical elements of most high technology products and 

a basic element of the information technology 

age.

1.2 Introduction to the Technical Issue

Semiconductor manufacturing is a complex, multi-step process that simultaneously 

creates hundreds to thousands of copies of 

an integrated circuit on a semiconductor 

wafer that is ten to twenty centimeters in 

diameter. Each integrated circuit is composed of active semiconductor devices 

(transistors) and passive devices (resistors 

and capacitors). During the manufacturing 

process, millions of these devices are constructed simultaneously in each integrated 

circuit. The integrated circuits are composed 

of multiple layers of materials. These layers 

are configured to make up the devices in the 

circuit as well as the millions of conducting 

lines needed to interconnect the various devices in the circuit. More than one hundred 

meters of such interconnections may be created within each of the integrated circuits on 

a wafer. The resulting integrated circuits are 

cut from the wafer. Each is mounted in a 

plastic or ceramic package and is wired to 

tens to hundreds of "pins" which extend 

outside of the package. The pins of the 

package are later soldered to wired patterns 

embedded in printed circuit boards to form 

functioning products.

Advancing semiconductor technology is 

evolving toward even more complex semiconductor devices with smaller feature sizes. 

The evolution is driven by the need for more 

powerful semiconductor products and for 

reduced cost and size. The evolving technology is resulting in changes in processing 

and quality control, in materials technology,

in device design, and in packaging.

Improved processing and quality control 

requires new processing technologies, x-ray 

lithography as an example, which can produce finer structures and productivity improvements using existing technologies. The 

process of making an integrated circuit requires up to 500 steps. Most of these steps 

cause irreversible changes so that a single 

processing error can render an entire wafer 

useless. Measurements are usually not possible after every processing step, only some 

of them. The result is that additional, expensive processing steps are often applied to 

a wafer that has already become scrap.

Two principal classes of materials go into 

the manufacture of integrated circuits: (1) 

the starting silicon and compound semiconductor materials on which integrated circuits 

or individual transistors are formed, and (2) 

the materials introduced during subsequent 

processing steps to form layers and interconnecting lines. For both classes of materials, 

greater purity is required as the feature sizes 

of integrated circuits are reduced. In some 

cases impurity levels less than one part in a 

trillion are required. The seriousness of the 

problem is reflected in reports from U.S. 

manufacturers that sophisticated integrated 

circuit manufacturing processes that work 

with materials supplied by Japan sometimes 

do not work with U.S. materials; yet U.S. 

measurement methods are unable to detect 

the differences between the two sets of materials.

Particles that were specks at larger feature 

sizes are boulders to smaller feature sizes, 

and cause catastrophic flaws in the chips. 

Particles arrive in both gases and process 

chemicals, and are generated by process 

equipment, material handling, and the people 

who work in the process area.

As the size of semiconductor devices decreases, the solid-state effects of the boundaries of regions within the devices become 

significant. These effects were negligible at 

larger feature sizes. Computer models used 

in engineering design no longer correctly

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predict the behavior of the devices, leading 

to serious difficulties in creating new integrated circuits that work properly.

As integrated circuits become more complex, so do the design requirements on their 

packages. More heat must be dissipated in 

smaller packages, more pins must be accommodated, and the sensitivity of integrated 

circuits to thermal stresses increases.

1.3 Funding Levels for Semiconductor Research 

and Development

The Federal funding for research and development in semiconductor technology is summarized in Table 1.

TABLE 1. Funding of semiconductor research and 

development (dollars in millions) by agency.

Agencv 1988 1989 1990

Energy 48 48 48

Defense 404 416 423

NSF 32 34 36

NASA 3 4 4

Commerce 3 3 3

Total $490 $505 $514

The budget data collected for this report was

based on a unique set of definitions, a unique

process for data collection, and on the budget

proj ections during the 1989 fiscal year. For this

reason these numbers do not track with, nor

should they be compared to, the budget crosscuts which have been prepared for subsequent

budgets.

following sections.

1.4 Department of Energy Semiconductor 

Program

The Department of Energy (DoE) carries out 

research on semiconductors and semiconductor 

manufacturing technology related to several DoE 

missions including solar energy, the weapons

program, basic energy sciences research, and 

high energy physics research. In addition, basic 

research to understand the properties and behavior of semiconductors is conducted both to 

broaden the knowledge base and to support the 

solar energy and weapons programs. The 

semiconductor program includes advanced 

processing of semiconductors, surface property 

measurements, research on developing new 

compound materials, and theoretical studies. 

Compound semiconductors are necessary for 

the integration of optical and electronic functions, 

and for high speed and microwave devices. 

Research is also directed toward development of 

subnanosecond, gallium arsenide, linear, photoconductive switches, and picosecond x-ray and 

gamma-ray radiation detectors. DoE meets with 

the semiconductor industry to exchange information, to make industry aware of DoE activities, and to take industry concerns into account. 

A workshop was held to develop a plan for the 

development of x-ray lithography, a process for 

imprinting finer features on semiconductors. The 

Department of Defense has provided funds to 

DoE's Brookha ven National Laboratory to design 

and build a compact synchrotron for this process. 

Industry has also expressed interest in DoE capabilities in compound semiconductor expertise, 

clean room technology, and advanced processing. DoE has funded development of a synchrotron at Louisiana State University to coordinate government efforts on x-ray lithography.

1.5 Department of Defense Semiconductor 

Program

1.5.1 Silicon and Gallium Arsenide Integrated Circuits. The Department of Defense 

(DoD) semiconductor technology program 

encompasses a range of fabrication technologies used to manufacture miniaturized electronic devices mainly on silicon or gallium 

arsenide substrates. The components of microelectronics fabrication technology may be 

divided into the following categories:

Wafer Preparation: The technology used for 

mass-production of high quality semiconductor wafers, including crystal growers, 

slicers, polishers, and preliminary dopant 

equipment.

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Wafer Fabrication: The body of technologies 

used to fabricate integrated circuits on the 

prepared wafer, including lithography systems, ion-implantation machinery, thin film 

deposition and removal technology, clean 

room technology, etc.

Mask Making and Design: The "off-line" 

technology used to make "camera ready" 

circuit masks (used by lithography and 

doping processes), circuitry design (e.g., 

computer-aided design hardware and software), and device technology.

Assembly and Test: The so-called "backend" of the microelectronic production process encapsulates the semiconductor die (or 

"chips") into a ceramic or plastic package 

(housing). This category includes the associated bonding equipment (wire bonders and 

die bonders) and the test machinery used for 

die-on-wafer testing as well as final packaged circuit testing.

Radiation Hardening: Hardening microelectronics against damage caused by high 

energy electrons, neutrons, protons, heavy 

particles, x-rays, and gamma radiation is 

vital to system performance in hostile radiation environments. Techniques used to accomplish that goal include special circuit 

designs, application of silicon-on-insulator

(SOI) and silicon-on-sapphire (SOS) technology, and processing techniques to reduce 

radiation sensitivity of the silicon/silicon 

dioxide interface.

This fabrication technology has widespread 

use in both military and commercial applications, including computing, communications, and digital electronics. Many special 

manufacturing problems remain from a 

military point of view, however. The most 

important of them involves microcircuit reliability in hostile (i.e., combat) environments. 

Reliability problems caused by hostile environments often demand specialized manufacturing solutions that may not be available 

from U.S. industry. Solving these problems 

remains a critical aspect of DoD fabrication 

efforts.

DoD has extensive microfabrication technology development efforts underway. Perhaps best known is the DoD V ery High Speed 

Integrated Circuits (VHSIC) program. Now 

in its final phase, the VHSIC program currently is focused upon refining the technologies required to achieve submicron (0.5 

micron) feature sizes. This capability will 

allow fabrication of extremely dense and 

high-speed integrated circuits. In addition 

to the VHSIC program, DoD is also engaged 

in other silicon-based microfabrication 

technology R&D. In 1989, DoD agreed to 

support SEMATECH, an industry consortium formed to focus on advanced technology development. SEMATECH's specific 

program is still undergoing evaluation. DoD 

is also pursuing advanced lithography 

technology (ultra-violet, x-ray, and electron 

beam), and is developing radiation-hardened 

semiconductor devices (for both metal oxide 

and bipolar device types).

DoD is also developing microelectronics 

circuits on gallium arsenide (GaAs) substrates 

as well as on other compound semiconductors. DoD7 s Microwave and Millimeter-Wave 

Monolithic Integrated Circuit Program 

(MIMIC) is focused upon the development 

and production of affordable, reliable, analog circuits for use as sensors and signal 

processors in the front-ends of electronic 

warfare, radar, smart munitions, and communication systems. These circuits, fabricated primarily from gallium arsenide, operate at frequencies from 1 to 100 GHz. Devices being used include High Electron Mobility Transistors (HEMTs), and Heterojunction Bipolar Transistors (HBTs). Other 

programs develop millimeter wave power 

devices, wafer-scale technology, molecular 

beam epitaxy, and superlattice technology.

1.5.2 GaAs/Compound Semiconductor Materials. Gallium arsenide and other compound semiconductors (such as indium 

phosphide, indium antimonide, and mercury-cadmium-telluride) have historically 

played important roles in microwave and 

millimeter wave circuit devices as well as 

roles at other frequencies (eg., infrared and

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optical). While these materials have well 

known potential for still other applications 

(such as high speed, radiation resistant, integrated circuits), fabrication difficulties 

prevented the realization of these potential 

applications. Since 1980, major technology 

advances have led to greatly improved GaAs 

materials. Preparation at the molecular level 

has recently permitted fabrication of the first 

truly microelectronic integrated circuits on 

non-silicon substrates. GaAs technology is 

expected to become competitive with siliconbased microelectronics, and promises significant advantages especially for military 

applications.

GaAs circuits could have significant technical advantages over their silicon-based 

counterparts because of two intrinsic advantages GaAs has over silicon, namely, a 

faster electron drift velocity and inherently 

better resistance to radiation damage. GaAs 

has an electronic drift velocity nearly seven 

times faster than silicon, a significant advantage which can now be exploited. Thus, 

a GaAs integrated circuit may be many times 

faster than a silicon-based counterpart of 

similar design and complexity. Gallium arsenide materials are also inherently less 

susceptible to damage caused by ionizing 

radiation (e.g., that experienced in routine 

space operations or in a nuclear blast environment) than silicon.

Despite its recent breakthroughs, GaAs device fabrication technology remains relatively 

undeveloped compared to more than two 

decades of research and development in fabrication technology for silicon devices. Development and incorporation of GaAs technology into new or existing microfabrication 

techniques is believed to be critical if DoD is 

to keep pace with materials preparation advances now occurring worldwide. Such 

developments would also significantly affect 

existing applications of GaAs technology, 

especially in millimeter and microwave 

systems. Materials preparation technologies 

include advanced III-V compound semiconductor epitaxy, II-VI compound semiconductor epitaxy, materials handling techniques, and thin film deposition processes 

and equipment.

GaAs now is used in solid-state active-aperture-antennas (phased arrays). The same 

integrated circuit elements will appear more 

commonly in equipment for communications, electronic warfare, and electronic intelligence, avionics, missile guidance and 

control, and surveillance from space in the 

1990s.

Work is in progress to develop a high-pressure liquid encapsulated Czockralski 

(HPLEC) crystal puller fitted with a variety 

of sensors to allow the reproducible production of larger diameter, larger overall 

size (20-25 kg) boules, of gallium arsenide 

substrate material with the electrical properties and uniformity necessary to provide 

starting materials for microwave and millimeter wave devices.

Work is also in progress to improve the control and uniformity of epitaxial gallium arsenide layers. Techniques being developed 

include Metal Organic Molecular Beam 

Epitaxy (MOMBE), Molecular Beam Epitaxy 

(MBE), and Metal Organic Chemical Vapor 

Deposition (MOCVD). Strategies for the short 

term are primarily directed toward improving the quality and reproducibility of wafers 

grown one at a time. Longer range plans call 

for development of equipment which would 

allow simultaneous epitaxial growth on 

multiple gallium arsenide wafers.

1.6 National Science Foundation 

Semiconductor Program

1.6.1 Semiconductor Physics and Materials 

Sciences. The National Science Foundation 

(NSF) support for this area has the objective 

of providing a fundamental understanding 

of the mechanical, thermal, electrical, magnetic, optical, and other properties of semiconductor materials and other ma terials used 

in making semiconductor devices. This 

knowledge is the cornerstone of semiconductor technology.

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1.6.2 Semiconductor Chemistry. NSF supports research on photochemistry for lithography, which remains the basic technology for mass production of integrated 

circuits. Basic research in both surface 

chemistry and inorganic chemistry is supported with the objective of yielding improved techniques for depositing or etching 

circuits on chips. New types of semiconductors made from polymers may emerge soon 

from basic research in organic chemistry.

1.6.3 Semiconductor Mathematics. NSF 

supports academic research on theoretical 

mathematics such as Boolean algebra, which 

formed the basis for the design of the first 

digital computers. Today, such semiconductor-related areas as device design and modeling depend on advanced mathematics.

1.6.4 Packaging Materials. Materials used in 

packaging integrated circuits have a profound effect on the performance and reliability of finished semiconductor products. 

Packaging materials technology becomes increasingly critical in modem devices with 

very small circuit dimensions and high power 

dissipation. NSF supports basic research in 

ceramic packaging.

1.6.5 Dielectrics. Various dielectric (nonconducting or insulating) materials are 

needed in semiconductor devices for such 

functions as providing electrical capacitance. 

New or enhanced dielectric materials could 

increase the capability or reduce the cost of 

such semiconductor devices. NSF supports 

research in this area.

1.6.6 Silicon Technology and Devices. NSF 

supports basic research in semiconductors 

with an emphasis on projects that may result 

in new technologies, devices, or processes. 

NSF supports the Semiconductor Research 

Corporation, which develops programs to 

strengthen the U.S. industrial position in 

semiconductor manufacturing. In addition, 

the NSF provides funding for several individual investigator grants for silicon devices, 

development, processing and device modelling.

1.6.7 Compound Semiconductor Technology and Devices. NSF supports research on 

devices with applications in signal generation, signal processing, chemical sensing, 

frequency conversion, and power processing with an emphasis on investigations into 

fundamental physical phenomena. The 

emphasis is on experimentally based research 

and on devices with long-range future impact and / or areas with a lack of fundamental 

understanding of device operation. NSF 

supports work on molecular beam epitaxial 

growth of compound semiconductors and 

growth and characterization of semiconductor quantum wells and superlattices. NSF 

provides support for academic researchers 

to use the semiconductor fabrication and 

processing facilities of the Electronics Technology and Devices Laboratory operated by 

the Department of the Army.

1.6.8 Device Processing Techniques. NSF 

supports investigations of advanced processing techniques that permit fabrication of 

improved and novel solid state electronic 

devices, with emphasis on fundamental 

studies of processes that have promise in 

device fabrication. New resists, ion implantation, transient processing techniques using 

lasers, and the development of x-ray lithography are some examples. NSF supports the 

Cornell National Nanofabrication Facility, 

which is a user facility for making smallfeature-size semiconductor devices for research and development.

1-6.9 Integrated Electronics. The ability to 

design integrated circuits that incorporate 

many circuit elements onto one chip draws 

on a wide range of engineering disciplines. 

NSF-funded research in this area focus on 

maintaining circuit quality, performance, and 

reliability as circuits are designed on a progressively smaller scale. Improving the interconnections and contacts between circuit 

elements is also of critical importance.

1.7 National Aeronautics and Sparp Administration (NASA)

Semiconductor activities within NASA are 

focused on gallium arsenide (GaAs) technology.

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S e m ic o n d u c t o r s, Fiber O p t ic s, S u p e r c o n d u c t in g M a t e r ia l s, a n d A d v a n c e d M a n u f a c t u r in g

The objective of this program is to develop GaAs 

digital integrated circuit technology for onboard 

high data rate signal processing applications 

such as: Robotic Vision, High Resolution Imagery 

Spectrum and the Geodynamic Laser Ranging 

System (GLRS) instruments. The technology 

development plan is structured to build on the 

previous development of Depletion Mode (D 

Mode) transistor devices to develop High Electron Mobility Transistor (HEMT) low power 

devices.

The D Mode development was initiated in 

FY83 after three studies identified GaAs as the 

most promising technology to meet NASA's 

onboard processing requirements for high data 

rate processing, low power, high reliability and 

radiation tolerance. In fiscal year 1983, a project 

was initiated to develop an Advanced Adaptive 

Processor (AAP) chip set. The AAP chip set is 

structured around a general purpose processor. 

Other devices in the chip set are the random 

access memory and gate array which were developed by DoD. During 1987, a general purpose 

processor, with controller, was fabricated using 

DoD's GaAs pilot line. Initial testing of the wafers showa good yield of fully functional devices. 

These two devices were integrated in 1988 and 

successfully applied to image data compression.

The present effort has a goal of developing a 

general purpose processor using the Minimum 

Instruction Processing Set (MIPS) architecture 

by 1992. In 1989, NASA continued a program 

initiated the Office of Naval Research to enhance 

the yield of random access memory devices with 

an access time of 1.0 nanosecond utilizing the 

HEMT devices. This device will be utilized as a 

memory in high data rate applications.

1.8 Department of Commerce Semiconductor 

Program

1.8.1 Program Objectives. The Semiconductor Metrology Program (SMP) in the 

Department of Commerce's National Institute of Standards and Technology (NIST) 

provides generic measurement methods and 

services, national reference standards, carefully evaluated reference data, technical 

consultation on metrology, and theory. These

support research, development, and manufacturing; promote equity in domestic and 

international markets; and aid international 

competitiveness of the nation's manufacturers and users of semiconductor materials, 

fabrication equipment, and devices. The 

program does not include development of 

new commercial device designs, new processing or assembly techniques, or new 

manufacturing equipment, except as these 

may arise logically as the outcome of the 

basic metrology mission.

1.8.2 Technical Activities. Integrated circuit 

manufacture is a measurement-intensive 

process. Roughly a quarter of the cost of the 

product is due to the cost of measurement. 

Only the most essential problems with significant impact potential ("high leverage" 

issues) can be addressed by NIST's relatively 

small program.

Projects are selected in response to measurement needs expressed by industry, particularly those that relate to the NIST missions of 

improving U.S. competitiveness and promoting equity in domestic and international 

trade. The dissemination mechanisms enumerated below frequently establish industry 

contacts that contribute substantively to input for planning. The extraordinarily dynamic character of the industry demands 

these close ties if the NIST program is to be 

responsive to industrial measurement needs. 

Most of the technical concerns of the industry are considered in the formal planning 

process.

Program work ranges across the metrological research and development board, from 

basic investigations of the behavior of materials and structures to the development 

of special circuits used in characterizing performance limits of devices and processes.

Special measurement methods are required 

to determine the levels of dopants, defects, 

impurities, and structural imperfections in 

semiconductor materials. Many of these 

measurement methods also support process 

development and control. Resistivity measurements of dopant density in silicon wa-

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R eport of the P resid en t t o the C o n g r e ss o n Federal P olicies, B u dg ets, a n d T ech nical A ctivities in

fers continue to be supported and improved. 

Methods for measuring oxygen and carbon 

in silicon wafers using non-destructive infrared optical techniques are being developed. Expertise with compound semiconductors continues to be advanced. A variety 

of x-ray techniques for characterizing semiconductor materials and structures are being 

developed using a recently completed beam 

line at the Brookha ven National Synchrotron 

Light Source.

Work continues on developing integrated 

circuit test structures as a major tool for 

verifying the performance of fabrication 

processes and the reliability of completed 

circuits. Activity is focused on the analysis of 

test structure data using machine learning 

algorithms and expert systems analyses. The 

algorithms digest historical data on fabrication processes to derive rules for use in expert systems. The expert systems provide 

real-time diagnosis of difficulties arising 

during subsequent processing and generate 

prioritized lists of candidate corrective actions. Test structures can also be used for 

reliability determination by examining failure mechanisms such as electromigration 

and time-dependent dielectric breakdown.

Models and measurements to support both 

integrated circuits and power transistors are 

being developed. For integrated circuits, 

theoretical studies of the quantized electron 

states in silicon and compound semiconductors are being conducted to understand device performance better. For power transistors, measurements for characterizing performance continue to be developed. A key 

aim is to provide measurements that can 

determine non-destructively the safe operating conditions for new types of power 

transistors, including those based on mixed 

technologies.

Standards for feature-size measurements on 

wafers are in constant demand from the industry for controlling the dimensions of integrated circuit patterns. Past calibration 

tools for use with photomasks are being extended to the smaller range of dimensions

now foreseen, using electron microscopy. 

Work continues on the very difficult problem 

of measuring these small scale features on 

wafers in the production process.

1.8.3 Dissemination of Results to Industry. The accomplishments of the program 

are disseminated through a special NIST 

publication series for major reports of program research (about 80 have been issued); 

quarterly progress reports; other NIST-published reports; and about 800 journal and 

conference papers. All are referenced in an 

annual NIST List of Publications in semiconductor technology.

The program also targets information to those 

who need it through seminars and workshops 

on special topics; talks at professional meetings; videotapes; visits to industry sites; visits 

to NIST by engineers and researchers in industry; consultations; industrial organizations such as the Semiconductor Industries 

Association (SIA), Semiconductor Equipment 

and Materials International (SEMI), and the 

Electronic Industries Association (EIA); and 

standards development in committees of the 

American Society for Testing and Materials, 

EIA, the Institute of Electrical and Electronics Engineers, and SEMI, for example. Dissemination is also accomplished through the 

sale of standard reference materials, the 

provision of computer codes on magnetic 

tapes, and informal consultations.

1-8.4 Collaboration with Industry Collaboration ranges from industry's provision of 

materials or technical services not otherwise 

available to NIST through NIST participation 

in interlaboratory round-robin experiments 

to participation in cooperative research 

projects. Frequently, researchers in industry 

and at NIST will characterize the same set of 

specimens as part of the process of developing 

a new measurement method.

1-8-5 Services for Other Agencies. Semiconductor expertise and technical advice are 

frequently needed by other government 

agencies for a variety of reasons including 

export controls, antitrust and merger issues,

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S e m ic o n d u c t o r s, F iber O p t ic s, S u p e r c o n d u c t in g M a teria ls, a n d A d v a n c e d M a n u fa c t u r in g

antidumping matters, etc. Program staff with 

appropriate expertise are made available as 

needed on a reimbursable basis. Measurement problems of concern to other agencies 

are undertaken at their expense, subject to 

mutual agreement on topics, costs and 

deliverables. National security matters are 

generally addressed by the program only 

when specifically targeted to the semiconductor industry, such as is the case with 

DoD's Very-High-Speed Integrated Circuits 

(VHSIC) and Microwave Monolithic Integrated Circuits (MIMIC) programs, and 

SEMATECH.

1.8.6 Formal Evaluation of Program Effectiveness. The activities of the program are 

reviewed in detail annually by a panel of 

experts from industry and academic institutions selected and administered by the National Academies of Science and Engineering. 

The panel reports candidly both informally 

and in writing. These evaluations provide 

valuable guidance and have a major influence 

on the conduct of the program.

Formal studies have examined the effectiveness of the SMP in assisting industry from an 

econometric point of view. These studies 

concluded that from 1973 to 1977 the NIST 

program increased the overall industry productivity level by approximately 1 percent. 

[Independent evidence indicates that this 

amounted to 5 percent of the increase in 

semiconductor industry productivity during 

that period.] The value of these productivity 

benefits was from $30 to $50 million per year 

over this period. Benefit:cost ratios for those 

NIST semiconductor projects which have 

been studied range from 5:1 to 110:1.

2. Fiber Optics and Optoelectronic

Technologies

2.1 Introduction

Photonics is the name given to the generation, control and use of photons (light). It is the 

optical analog of electronics. Photonic or electrooptic devices and systems can have a large bandwidth. This means that huge amounts of data 

can be quickly switched and transmitted.

Photonic devices like electronic devices have 

diverse uses. However, photonic devices are not 

nearly as well developed as electronic devices, 

and many uses are not, at present, cost-effective. 

The main commercial application for photonics 

is for information transmission. A second major 

use, optical computing, is in the exploratory 

stage.

Photonic-based systems are becoming the 

system of choice for many high-data-rate uses. 

For example, the long distance telephone and 

data network is rapidly converting to photonic 

based systems. Even such short-haul uses as 

communication between racks of equipment in a 

large switching system or computer and between 

components of in-home high fidelity stereo 

systems are being taken over by photonic systems.

The advanced state of photonic transmission 

systems and their reliability can be gauged by 

the fact that the trans-Pacific and trans-Atlantic 

cables recently put into service are photonic 

systems capable of carrying the equivalent of

40.000 voice transmissions simultaneously; the 

previous coaxial cable system has a capacity of

10.000 voice channels. In addition, photonic 

systems are proposed for distributing data and 

high definition television (HDTV) signals to the 

home, a potentially huge consumer market.

Photonic systems are being developed and 

evaluated because they promise some potential 

advantages over electronic systems:

a) They have gigabit wide bandwidths and 

so can carry a large volume of data.

b) They are immune to many forms of electromagnetic interference.

c) They are difficult to intercept and tap 

and so give better security.

A photonic transmission system has three 

basic components:

a) Electro-optic input device—the input 

device changes the electronic input signal to a photonic (optical) output.

Present day technology uses an electrically switchable semiconductor laser. It 

was the invention of the laser in the late

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R e p o r t o f t h e P r e s id e n t t o t h e C o n g r e s s o n F e d e r a l P o lic ie s , B u d g e ts , a n d T e c h n ic a l A c t iv it ie s in

1950' s that ushered in the photonics age. 

Because a laser generates a coherent almost single frequency output, the design 

of low attenuation, non-dispersive systems are made much easier. Semiconductor lasers are small, complex devices 

made primarily of the m-V elements such 

as gallium, arsenic, and phosphorus. The 

processing technology used in production is extremely complex. Presently, 

molecular beam epitaxy, liquid phase 

epitaxy, and vapor phase epitaxy, are the 

predominant technologies.

b) Transmission Medium—the informationbearing photons are transmitted over an 

optical fiber. An optical fiber is usually a 

thin fiber of silica glass about the diameter of a human hair; i.e., about 75 micrometers that can be made in unbroken 

lengths of many kilometers. Fibers, even 

when in bundles, can be readily spliced 

in the field.

The fibers have extremely low attenuation and dispersion, and signals need 

only be amplified after many kilometers. 

The low attenuation and dispersion 

characteristics are obtained by making 

the fiber of several layers of extremely 

pure glasses of different refractive indices.

c) Electro-Optic Output Device—the output 

device converts the modulated photon 

stream at the end of the optical fiber to an 

electronic signal. The device is usually a 

semiconductor photo-diode. The technology used for its manufacture is similar to that used for the input devices 

described above.

The technology used in electro-optic input and output devices may be critical 

for key devices proposed for many advanced displays.

The high speed and high noise immunity 

of photonic systems make them a natural 

consideration for computing applications. However, several basic devices 

necessary for a completely photo-based

system are either not readily available, or 

are not cost-effective. For example, there 

is no cost-effective photonic analog to the 

transistor or integrated circuit. So presently, high speed electronic devices made 

with silicon or gallium arsenide are used 

to do the switching, amplification and 

memory functions, with photonics being 

confined to data bussing. However, many 

laboratories worldwide have strong R&D 

efforts on photonic computer devices and 

components.

The Department of Defense (DoD), via 

the Defense Advance Research Programs 

Agency (D ARPA), has funded a program 

aimed at providing key gallium arsenide 

technology devices. Also, DoD, via the 

Air Force and in partnership with New 

York State and several universities, is 

forming a photonics center of excellence 

covering all aspects of photonics. In addition, several government laboratories 

are doing R&D in photonic based systems.

2.2 Introduction to Technical Issue

Low loss fibers, capable of supporting very 

high data rates were theoretically predicted in 

1968 and demonstrated by U.S. industry only a 

couple of years later. By the end of the 1970's 

these new carriers of information were already 

being implemented in the Northeast corridor 

telephone system from Boston to New York to 

Washington, D.C. This first demonstration was 

with multimode fibers transmitting laser pulses 

operating at wavelengths of 0.8 to 0.9 micrometers and capable of transmitting information over 

three channels of 90 megabits/s/channel. Since 

this very early demonstration the industry has 

moved rapidly to single mode fibers carrying laser 

pulses at 1.3 micrometers, where the losses are 

much less, and usually operate in excess of 1 gigabit / 

second.

High data rate single mode optical fiber networks now encompass the entire U.S. and reach 

to both Europe and Japan. This rapid deployment 

of fiber optic telecommunication systems has 

required very significant developments in basic 

and applied research and component manufac-

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S e m ic o n d u c t o r s, Fiber O ptics, S uper c o n d u c tin g M aterials, a n d A d v a n c e d M anu fa c tu r in g

turing. The necessary components include laser 

diodes operating at 1.3 micrometers, fiber connectors, couplers, detectors, modulators, optical 

waveguides, optical multiplexers and 

demultiplexers, low loss fiber operating near the 

theoretical limits, and all the supporting specialized instrumentation. The systems will soon be 

operatingatwavelengthsof 1.55 micrometers where 

even lower losses in the fibers are possible.

The fibers themselves are capable of carrying 

much higher data rates than at present, even in 

excess of 100 gigabit/second, and in the future 

more sophisticated modulation schemes will 

realize this potential. Also coherent communications are being extensively researched and 

may be implemented in a few years. Coherent 

communications have the potential of enhanced 

signal-to-noise ratios and thus greater distances 

between repeaters where the signal must be 

detected, reconstructed, and again transmitted. 

Coherent communication also holds the promise 

of enabling very large numbers of channels operating at different wavelengths to be transmitted 

through a single fiber.

The next major thrust in fiber optic telecommunications is the transmission of information 

to homes and business places connected through 

subscriber loops and local area networks (LANs). 

These implementations are likely to depend 

heavily on integrated optics, especially modulators, wavelength-division multiplexing and 

demultiplexing, and optical-to-electronic interfaces. These new developments will require 

extensive basic and applied research and product development.

Optical fiber sensors are another major potential application of photonics. These sensors 

can measure temperature, pressure, electrical 

current, and many other phenomena. Important 

products being developed include hydrophones 

and fiber-optic gyros. These sensors are often 

very important for special situations such as 

chemical processes, shipboard and space applications. They hold much promise for medical 

applications. For the most part these products 

are in the applied research stage and require 

further work in the manufacturing process, engineering the components to work in harsh environments, material properties, and general marketable product development. They hold significant promise for future markets.

2.3 Procurement Policies

Existing Federal procurement policies and 

regulations for items incorporating fiber optics 

and optical electronic technologies are the same 

as they are for all other items. The policies and 

regulations emphasize widespread dissemination of announcements for bid competitions 

followed by competition and bid evaluation 

based on lifecycle costs and performance. Procurement decisions are based on agencies' programmatic needs and not on the promotion of 

specific technologies. Specific procurement 

regulations can be found in the Federal Acquisition Regulations.

2.4 Funding Levels for Fiber Optic and

Optoelectronic Research and Development

The Federal funding for fiber optic and optoelectronic research and development is summarized in Table 2.

TABLE 2. Funding of photonic research and development (dollars in millions) by agency.

Agencv 1988 1989 1990

Energy 9 10 10

Defense 80 118 116

NSF 13 14 16

NASA 7 4 4

Commerce 2 2 5

Total $111 $148 $151

The budget data collected for this report was

based on a unique set of definitions, a unique

process for data collection, and on the budget

projections during the 1989 fiscal year. For this

reason these numbers do not track with, nor

should they be compared to, the budget crosscuts which have been prepared for subsequent

budgets.

The agency programs are summarized in the 

following sections.

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R e p o r t o f t h e P r e s id e n t t o t h e C o n g r e s s o n F ed era l P o licies, B u d g e t s, a n d T e c h n ic a l A c t iv it ie s in

2.5 Department of Energy Fiber Optic Program

The DoE conducts research and development that is intended to contribute to the 

knowledge base used to advance the state of the 

art in fiber optics and optical electronic technologies and the uses of fiber optics and electrooptical components in new applications. Research under the weapons program includes the 

synthesis, characterization and processing of 

glasses; investigations of non-linear optical 

properties of materials; and the effects of impurities on the optical properties of disordered 

materials. The goals are to improve the performance of these materials for use in diagnostic 

instrumentation for real-time monitoring of shock 

waves, lasers and weapons testing. Research is 

also underway on the possible applications of 

fiber optics and electro-optical technologies to 

sensors, detectors, modulators, and switches with 

their associated electronic drivers and amplifiers. 

The work is expected to make possible the 

implementation of new and unique diagnostics 

and to increase the capabilities for down-hole 

control and monitoring of complex experiments. 

Other research is on infrared photocathodes and 

a microchannel plate intensifier.

2.6 Department of Defense Fiber Optic Program

2.6.1 Fiber Optic Communications and Sensors. During the past decade, fiber optics has 

been incorporated DoD communication and 

sensor systems. The next decade will see a 

proliferation of DoD systems which rely on 

fiber optics to perform their functions. 

Today's fiber optics will provide ships, aircraft, and undersea communications with 

higher bandwidth capabilities at lower cost 

than cable approaches. Ultra low-loss fluoride fibers, with their theoretical loss of 0.001 

dB/km, will permit transoceanic repeaterless 

links which could revolutionize undersea 

surveillance, long distance communications, 

and tethered vehicles such as fiber guided 

missiles. Fiber optical sensors will provide a 

new class of gyros as well as an acoustic, 

magnetic sensor for inertial navigation, 

antisubmarine warfare, and commercial applications. DoE^s research and development 

efforts in fiber optics support all of these

applications as well as optical components, 

fiber optic cabling, and fiber coatings.

Ultra-low-loss fiber optics technology is an 

area of great importance to DoD. This technology consist of optical fibers fabricated with 

zirconium fluoride glasses. These glasses are 

the lowest scatter material ever produced 

and represent a major advance in glass 

chemistry. This technology is crucial to such 

systems as large aperture, high-gain, acoustic arrays (thousands of acoustic sensors interconnected over tens of kilometers), and 

long-range command guided anti-ship missiles. Continued integrations of electronic 

processors and controllers with fiber optical 

devices, improved interconnects, switches 

and multiplexers, and higher power, frequency tunable optical sources are important 

elements of this technology.

The superiority of fiber optic communication over copper-based systems can be 

measured by information-carrying capacity 

(four orders of magnitude greater for optical 

systems), energy loss in signal transmission 

(two orders of magnitude lower), error rate 

(one order of magnitude lower), and resistance to electromagnetic interference (EMI). 

Future developments in semiconductor lasers 

promise still greater improvements in data 

rate capacity and link margin.

Ultra low-loss fiber optics will support a 

number of critical military capabilities:

o Wide area surveillance,

o Undersea and tactical missile guidance 

0o w-cost, target and aimpoint selection), 

and

o Remote surveillance and tele-operated 

weapons platforms (removing the requirement for personnel to enter highthreat areas).

Fiber optic communication links will add a 

whole new range of capabilities for weapon 

guidance since they provide for wideband, 

non-line-of-sight, two-way communication. 

The Fiber-Optic-Guided Missile (FOG-M) is 

a prototype which provides a television or

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S e m ic o n d u c t o r s, F iber O p t ic s, S u p e r c o n d u c t in g M a teria ls, a n d A d v a n c e d M a n u fa c t u r in g

infrared image to the gunner, who guides it 

to the target while staying in a safe location. 

Advances made in fiber optics technology 

will provide future local area voice and data 

communications networks with more reliability and survivability. The tactical fiber 

optic local area networks can satisfy the need 

to distribute command posts by providing 

high capacity interconnection.

Fiber optical sensors support major improvements in Anti-Submarine Warfare 

(ASW) surveillance as well as providing the 

basis for autonomous underwater vehicle 

guidance. Future acoustic towed arrays from 

surface ships and submarines require at least 

10 times the number of acoustic channels in 

either multi-line or extra long arrays. Fiber 

acoustic sensor arrays appear to offer the 

best approach for this application. Highperformance, high-gain planar fiber acoustic 

arrays offer significantly increased capabilities. Bottom-mounted acoustic fiber sensor 

arrays connected by fiber optic telemetry 

cables will play a key role in enhancing 

DoD's capability to counter advanced submarine threats.

There are a number of DoD programs in fiber 

optics, fiber optic sensors, and semiconductor lasers of various types. Applications 

likely to be ready for full scale engineering by 

the year 2000 include fiber guided missiles, 

fiber optic local area networks for land and 

sea with bandwidths in excess of 20 GHz, 

high speed computer interconnects using 

fiber optics, phased array control by an optically-fed harness to the transmit/receive 

elements, and intrusion detection systems 

made with optical fibers.

Ultra low-loss fiber optic technology is being 

pursued by DoD in its technology base and 

advanced technology demonstration programs, and can be expected to be available 

for incorporation in engineering developments by the mid-to late-1990s. DoD is also 

developing a rugged, non-kinking fiber optic cable for the FOG-M.

2.6.2 Tntpgrated Optics. Integrated optics 

(photonics) encompasses the technology for

devices that use light (photons) and electronics (electrons) to perform functions that are 

now typically performed by electronic devices. The next 20 years will see the emergence of photonic devices in sensor, communication, and information processing systems. Photonics developments can provide 

major improvements in tactical and strategic 

systems. The DoD advanced technology 

developments in photonics include optical 

memories, optical signal processing, optical 

computing networks, optical control of 

phased arrays, integrated opto-electronic 

networks, and nonlinear optical processing.

Integrated optical computing offers orderof-magnitude improvements in processing 

speed resulting from the natural parallel architecture and high switching speeds of optical devices. In addition, integrated optical 

circuits eliminate many potentially troublesome connectors and increase reliability. New 

distributed processing architectures will exploit the absence of metallic wires and concomitant electromagnetic interference problems.

The processing rates for emerging electrooptical and infrared sensors, electronic warfare and undersea surveillance are surpassing the capabilities of electronic processing 

(1-10 Gbit/s). Dedicated integrated optical 

processors will soon be needed which act as 

sensor front ends to reprocess the data and 

reduce data rates to those compatible with 

current and projected electronic processors. 

Dedicated special purpose integrated optical 

processors are now in use within DoD in 

such front end applications.

2.7 National Science Foundation Fiber Optics 

Program

2.7.1 Fiber Optics. The NSF supports university research efforts in optical fiber technology for communications, sensing, and 

switching applications. The projects involve 

fundamental research and vary widely from 

investigations into the transmission of data 

to the creation of devices for integrated optics and the investigation of nonlinear optics

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R eport of the P r esid en t t o the C o n g r e ss o n Federal P olicies, B u dg ets, a n d T ech nical A ctivities in

phenomena for possible use in optical 

switching devices.

2.7.2 Optical Computing. The NSF supports 

a number of academic research projects in 

the use and exploitation of optical phenomena for possible applications in optical computing, processing, logic, displays, imaging, 

and others. Current research indicates that 

these functions, carried out by light rather 

than electricity, offer greater speed via faster 

switching capability and more massive parallelism, much greater information flow, and 

freedom from electronic interference.

2.7.3 Photoelectric and Optoelectronic Devices and Systems. The NSF supports academic research on semiconductor devices 

that exhibit photoelectric or optoelectronic 

properties. This research is aimed at yielding 

optoelectronic logic devices with theoretical 

switching speed orders of magnitude greater 

than possible with electronic logic devices.

2.8 Fiber Optics and Electro /Optics Programs at 

NASA

The NASA has several key programs in fiber-optic and electro-optics research and development for applications in space and aeronautics.

The key programs are:

(1) Spaceflight Optical Disk Recorder 

(SODR),

(2) Fiber Optic Rotation Sensor Program 

(FORS),

(3) Fiber Optic Control System Integration 

(FOCSI),

(4) Multi-Purpose Fiber Optic Transceiver 

(MFOX),

(5) Optical Communications, and

(6) Photonics Research.

2.8.1 Spacefli ght Optical Disk Recorder High 

rate (300 Mbps), high capacity (80 Gbit) 

rewriteable optical disk drive and controller 

demonstration units will be developed to 

support an expandable system concept providing up to 1.8 Gbps data rate and greater

— 26 —

than 1.2 Tbit capacity. Potential applications 

include buffering and management of high 

resolution sensor data. This random file 

access recorder system will support selective 

transmission of high priority scene segments 

and provide data storage for higher level, 

non-real time processing. This activity includes development of flight prototype 14 

inch media and diode laser arrays. Test bed 

demonstrations are planned with an early 

flight demonstration of a drive brassboard.

2.8.2 Fiber Optic Rotation Sensor Program. 

The objective of the FORS program is to 

develop a 10-year-lifetime, low cost, light 

weight, highly reliable, and high performance 

navigation grade optical gyroscope as part of 

the spacecraft inertial reference unit (IRU). 

The technology for the development of an 

IRU with these characteristics is key to future 

NASA missions such as the Comet Rendezvous and Asteroid Flyby (CRAF), Mars Orbiter, and Earth Orbiting platforms.

The thrust of this activity includes development of state of the art integrated optics 

technology using lithium niobate substrates, 

semiconductor lasers, and fiber optic 

waveguides operating with 1.3 micrometer 

wavelength light. Test bed and brassboard 

demonstrations are planned.

2.8.3 Fiber Optic Control System Integration 

The goal of the fiber optic control system 

integration program is to design, develop, 

test, and flight demonstrate a fiber optic integrated propulsion/flight control system 

for an advanced supersonic aircraft. The 

program consists of three phases. The first 

phase was to conceptualize an all fiber optic 

integrated control, define the sensor environment, evaluate the status of optical sensor 

readiness in industry, and as final output, 

provide a milestone chart for developing the 

technology to the point where it could be 

incorporated into production aircraft. The 

results of this study phase indicated that 

fiber optic/passive optical sensor technology was feasible and desirable. Additionally 

it showed that this technology will improve 

reliability through electromagnetic immu-
S e m ic o n d u c t o r s , Fiber O pt ic s, S u p e r c o n d u c t in g M ate r ia l s, a n d A d v a n c e d M a n u f a c t u r in g

nity while providing weight reduction for 

the aircraft. The second phase of the program 

is aimed at the selection, fabrication and 

testing of the preferred electro-optic architecture and its integration with a set of representative sensors for both the propulsion 

and the flight control system. The third phase 

of the program will be a flight test in which 

the electro-optic architecture and sensor 

system will be installed on an aircraft to run 

as a piggyback experiment. Flight tests of 

representative sensors and associated electrooptic architecture will be conducted in the FY 

1993-1994 timeframe.

2.8.4 Multi-Purpose Fiber Optic Transceiver 

The objective of this program is to provide a 

space qualified 0.05-4 Gbits/s fiber optic 

transceiver for space data systems, for use on 

Space Station, Earth Orbiting platforms, and 

planetary missions. This will require the 

development of an all integrated circuit 

transceiver that is fully military and space 

qualified. This activity also includes the 

development of high speed semiconductor 

lasers. An initial model of this high speed 

fiber optic space data system will be fabricated 

and evaluated in 1991.

2.8.5 Optical Communications The optical 

communications program develops the 

technology base required for the optical 

transmission of high resolution data from 

deep space planetary bodies for both robotic 

and piloted exploration missions; and for 

geostationary-to-geostationary, and geostationary-to-low-earth orbit missions. This 

program will develop the required components for optical communications such as: 

high power and long lifetime lasers, high 

speed optical modulators, high speed detectors, ultrastable oscillators, and ground base 

receivers.

2.8.6 Photonics Research The photonics research program consists of the following 

tasks: acousto-optic spectrum analysis, spatial light modulator development, and image 

processing system development.

Acousto-Optic Spectrum Analysis — The 

objective of this research is to develop and 

demonstrate the technology for real time 

wideband, high resolution, acousto-optic 

spectrum analysis of RF signals. Acoustooptic spectrum analysis has potential applications in radio astronomy, radar astronomy, 

and any other application where a wideband 

RF signal or a narrowband RF signal in a 

large analysis bandwidth is to be analyzed in 

real time.

Spatial Light Modulator — This task will 

exploit new quantum well devices to arrive 

at high performance optically or electrically 

addressed spatial light modulators. The 

approach focuses on a specific SLM based on 

modulation (switching) of the gain in optical 

amplifiers.

Image Processing System — This research 

focus on the development of an intelligent 

optical vision system that is able to perform 

optical pattern recognition and feature extraction. A new real-time updatable holographic writer will be developed for use in 

this vision system to accommodate NASA's 

planetary and outer space exploration needs.

2.9 The Department of Commerce Optical Fiber 

Program

The Department of Commerce R&D program 

is carried out in the laboratories of the National 

Institute of Standards and Technology (NIST). 

The objective of the optical fiber program at 

NIST is to provide the base of consistent physical 

measurements and standards required to support 

the development and commerce of optical fiber 

telecommunications.

This program has been in operation for about 

12 years in close collaboration with the industry 

through the Electronics Industry Association 

(ElA), its new subsidiary the Telecommunications Industry Association (TIA), and other standards organizations. It has developed, refined, 

tested and established 28 standard measurement 

techniques for characteristics of optical fibers 

such as: attenuation, bandwidth, refractive index profile, core diameter, numerical aperture,

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R eport o f the P r esid en t t o the C o n g r e ss o n Federal P o u c ie s, B u dg ets, a n d T ech nical A ctivities in

mode field diameter, cut-off wavelength, birefringence, Verdet constant, OTDR calibration, 

etc.

The initial emphasis of the program was on 

the characteristics of the optical fibers themselves 

because these were the major limitations on telecommunication technology. After much development, single mode fibers evolved to the extent 

that they now have potential channel capacity 

that is several orders of magnitude greater than 

can be used with the comparatively primitive 

terminal equipment in use today. Now, there are 

government and private sector efforts worldwide to develop faster transmission, wavelength 

division multiplexing, optical switching, coherent communication, and other techniques to make 

full use of the potential channel capacity of optical fibers that are already installed. The program 

at NIST is expanding to give full support of 

measurements and standards for these new 

technologies.

The expanded program includes establishing methods to measure the characteristics of 

optical waveguides in a variety of substrates. 

This is a basic technology for many of the new 

devices under development. A calibration service has been established for optical fiber power 

meters, using standards already established for 

laser power meter calibration (improved standards are under development). Two measurement systems are being developed to measure 

the response of laser diodes, detectors, modulators, and other devices to very fast pulses. A 

system has been developed to measure the 

wavelength emitted by laser diodes to support 

wavelength division multiplexing. Ultimately 

the means to make consistent and reliable measurements of the engineering characteristics of 

all components of advanced optical telecommunications systems will be established.

Another application of optical fibers with high 

commercial potential is to sensors. This requires 

fibers with certain characteristics that differ from 

those of telecommunication fibers, particularly 

with respect to the preservation of polarization 

and sensitivity to external conditions such as 

magnetic field, temperature, strain, etc. The 

optical fiber program at NIST encompasses the

measurement of the special characteristics of 

these fibers and the development and evaluation 

of prototype sensors for current, voltage, magnetic field, and other quantities. This work is 

complementary to that on telecommunication 

fibers.

3. Superconducting Material

3.1 Low Temperature Superconductors — 

Introduction to the Technical Issue

3.1.1 Low temperature superconductivity, 

as represented by conductors for large 

magnets used in high energy physics, experiments in fusion energy, and magnetic 

resonance imaging research, is a viable 

American industry. Superconducting wire 

and cable are produced by a number of 

companies in this country and magnets in 

varying sizes are also made here. However, 

it is believed that the requirements for sophistication of the wire composite will increase as the demands of new applications 

increase.

3.1.2 The low temperature superconductor 

industry developed in the U.S. over the past 

20 years. All of the methods now considered 

as "standard" for the production of these 

materials were developed slowly as the 

commerce developed. Such concepts as: a) 

dividing the superconductor into many fine 

filaments within a conducting matrix in order to stabilize the magnets against flux motion, b) the wind-and-react technique for the 

manufacture of magnets from the brittle 

niobiumtin intermetallic superconductor, or 

c) the use of thin film superconductor layers 

on a strong tape, came from the national 

laboratories and the industrial laboratories 

working together on problems ranging from 

basic physics to industrial production. In the 

final analysis, however, widespread commercialization of these products remains 

unlikely because they must be operated at or 

near the temperature of liquid helium. The 

technology of producing and handling this 

very cold and expensive liquid is complex.

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S e m ic o n d u c t o r s, Fiber O p t ic s, S u pe r c o n d u c t in g M a ter ia ls, a n d A d v a n c e d M a n u fa c t u r in g

3.1.3 There are no technical barriers to commercialization of NbTi conductor and there 

is, in fact, a significant market for these wires 

and cables. Other, higher field materials 

such as Nb3Sn and V3Ga present some problems although they are available commercially on a limited scale because of the limited 

number of uses. In both cases, the brittle 

nature of the superconducting filaments 

creates problems manufacturing long lengths.

There are other superconducting materials 

known with unique and desirable properties 

for some applications such as NbN, Nb3 A1 and 

PbMoS which may lead to commercial 

products.

3.1.4 Superconducting electronic devices 

have demonstrated outstanding speed, 

bandwidth, and sensitivity. However, 

commercial devices are limited to simple 

magnetic field sensors (SQUIDs) for use in 

medical and other scientific studies. A high 

speed sampling system has not sold well.

While superconducting microwave mixers 

are the detector of choice for 

radioastronomers, the market is very small.

More complex devices include a voltage 

standard developed at NIST and used in 17 

laboratories around the world. A very high 

speed microprocessor developed in Japan 

offers great promise but is still in laboratory 

development. Military applications have 

been under investigation for several decades 

but none are yet in actual use.

3.1.5 The development of high transition 

temperature superconductors has produced 

a renewed interest in low transition temperature superconducting electronics. For 

many military applications the added cost of 

cooling with liquid helium is not significant, 

although added weight of refrigeration remains a problem. Ultra-high-speed microprocessors could be of considerable importance. Just as reduced instruction set computers are making major advances in conventional integrated circuits, the astonishing 

speed of a superconducting microprocessor 

could be of significance. The quality of superconducting electronics for scientific applications continues to increase and these 

should produce a small market.

— 2 9 —

3.1.6 The technical problems blocking more 

widespread application include integrated 

circuit manufacturability and reliability although substantial progress has been made 

recently. The requirement for cooling with 

liquid helium inhibits simple applications, 

but in high value applications such as ultrahigh-speed computing, refrigeration is an 

engineering problem which can be overcome.

3.2 High Temperature Superconductors — 

Introduction to the Technical Issue

3.2.1 Commercialization of high temperature superconductivity has been the subject 

of numerous studies and the goal of several 

major consortia. These materials offer great 

promise because they bypass the constraints 

imposed by operation in liquid helium, an 

expensive substance that is difficult to handle. 

The possibility of materials that are superconducting in the range of conventional refrigeration methods is real, but not yet 

achieved. Several problems exist with the 

high temperature materials that must be resolved before commercialization can be 

considered on any large scale. They are 

complex materials that are not well understood . They are brittle ceramics, which makes 

the production of wires difficult (although 

Nb3Sn and other low temperature superconductors are also brittle and have been successfully made into very long lengths). They 

have widely different superconducting 

properties depending on direction through 

the crystal structure which makes large, 

polycrystalline conductors with good properties very difficult to create. There is no 

good theory for this type of superconductivity, something which is essential for rapid 

progress in the development of new materials.

3.2.2 High-transition-temperature superconducting electronics offers potential advantages like those of low temperature superconductors to electronic applications: 

speed, bandwidth, and sensitivity. Refrigeration should be much simpler with an 

operating temperature near that of liquid 

nitrogen. In cases where extreme sensitivity 

is needed, cooling with liquid helium may 

continue to be required.
R eport of the P r esid en t to the C o n g r e ss o n Federal P olicies, B udg ets, a n d T ech nical A ctivities in

3.2.3 High transition temperature superconductors are difficult to form into integrated 

circuits. Their sensitivity to precise control 

of chemical composition makes high quality 

thin films difficult to fabricate. The heating, 

which is often used in such processes, can 

change the composition, damaging superconducting properties. Fabrication of monolithic layered structures such as electrically 

insulated crossings or tunnel junctions (the 

superconducting counterpart of the transistor) has never been demonstrated. Other 

technologies do not offer much guidance to 

the likelihood of eventual success, although 

it is clear that a massive amount of educated 

trial and error will be required.

3.3 Funding Levels for Research and

Development in the Area of Superconducting 

Materials.

The Federal funding for research and development in the area of superconducting materials is 

summarized in Table 3.

Table 3. Funding of research and development in 

the area of superconducting materials (dollars in 

millions) by agency

Agency 1988 1989 1990

Energy 69 138 165

Defense 60 73 72

NSF 20 26 29

NASA 4 6 6

Commerce 3 3 4

Total $156 $246 $276

The budget data collected for this report was 

based on a unique set of definitions, a unique 

process for data collection, and on the budget 

projections dining the 1989 fiscal year. For this 

reason these numbers do not track with, nor 

should they be compared to, the budget crosscuts which have been prepared for subsequent 

budgets.

The agency programs are summarized in the 

following sections.

3.4 Department of Energy Superconductivity 

Program

3.4.1 Low Temperature Superconductivity. 

This research is conducted primarily because 

superconducting magnets are required to 

advance the performance of expensive experimental devices utilized in magnetic fusion energy and high energy and nuclear 

physics. Such magnets also reduce the substantial electric power cost of these accelerators, detectors, and experi-mental plasma 

fusion reactors. In fusion, the emphasis has 

shifted to development of high-field steady 

state and pulsed magnets. For accelerators 

and detection devices, research and development focuses on the development of superconducting wire, materials, and magnets.

3.4.2 High Temperature Superconductors. 

DoE carries out research and development 

on high temperature superconductors primarily in support of three program missions: 

Basic Energy Sciences, Conservation and 

Renewable Energy, and Defense Programs.

The Basic Energy Sciences research emphasizes synthesis, measurement of properties, 

determination of properties, theory, characterization, processing, investigation of novel 

electronic devices, and instrumentation that 

might benefit from incorporating the unique 

properties of these new materials. Much of 

the work is on fundamental questions regarding how materials become superconducting, the parameters of critical temperature, critical magnetic field and current, and 

synthesis of new materials to expand these 

parameters.

In Conservation and Renewable Energy, the 

emphasis is on applications in motors, generators, transmission lines, and other electrical equipment. The goal is to reduce the 

amount of electricity used by such devices, 

and the cost of running them. An extensive 

technology transfer effort includes three pilot centers at DoE laboratories; a series of 

interlaboratory meetings with university and 

industry participation telecast over the National Technology University network; a 

newsletter of world-wide research preprint 

titles; and database and information centers.

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Under Defense Programs, the research is on 

theory, materials characterization and materials synthesis to gain a scientific understanding of the fundamental properties responsible for superconductivity. There are 

many possible applications to the Inertial 

Fusion Program, the Nuclear Weapons 

Technology Program, and the Strategic Defense Initiative. This includes research on 

fast-opening switches, levitation bearings, 

solenoids, and electo-magnetic shielding.

3.5 Department of Defense Superconductivity 

Program

3.5.1 Low Temperature Superconductivity. 

Superconductivity technology encompasses 

both traditional metallic low-temperature 

superconductors (transition temperature below 23 K) and the new high-temperature 

superconductors (transition temperature as 

high as 125 K). Of concern are issues related 

to their basic properties, their fabrication 

into usable configurations, and their unique 

device and systems applications. Potential 

applications capitalize on the ability of superconductors to support lossless dc currents 

and low-loss ac currents, to levitate, to shield 

magnetic and electromagnetic fields, to sense 

magnetic and electromagnetic fields with 

unmatched sensitivity, to transmit electronic 

signals with extremely little distortion, and 

to fulfill analog and digital electronics functions at speeds 10 to 20 times faster than and 

at power dissipation 1,000 times less than is 

possible with semiconductors. Critical to all 

such applications are efficient and reliable 

refrigeration systems.

Large-scale, low-temperature superconductivity technology is relatively mature. Literally thousands of supermagnets are in routine use, but there has been only modest 

exploitation in military systems. Sensors 

and analog electronic devices are also highly 

developed, while digital electronics systems 

are at an earlier stage of development, at least 

in the United States. This technology promises high utility not only in its own right, but 

also for pioneering systems to be executed 

later with higher temperature superconducting materials at such time as that proves

— 3 1 —

feasible. High temperature materials are in 

their infancy and are difficult to process. A 

heavy investment in R&D will be required if 

their apparent potential is to be realized. The 

course of development will probably proceed 

from electronic transmission lines to sensors 

to analog and digital electronics to a variety 

of supermagnet applications.

Superconductivity applications, some of 

which have already been tested in prototype 

form, include more compact, higher-efficiency, electric drive systems for ships (and 

possibly land vehicles and aircraft), electric 

generators, electric energy storage systems 

for directed energy weapons, superconducting-cavity-particle-accelerator directed 

energy weapons, electromagnetic sensors 

from dc through infrared, infrared focal plane 

arrays, ultra-high-speed, ultra-compact signal processors and computers, high-performance low-noise communications and surveillance systems, superconducting antennas, 

and superconducting gyroscopes, inertial 

sensors, and gravimeters. In all cases, the 

performance advantages of such systems 

must compensate for the necessary refrigeration penalties. Many of these systems are 

unique with no normal-conductor counterparts, e.g., superconducting magnetic energy 

storage systems. In other instances new capabilities can be brought to platforms incapable of supporting conventional semiconductor counterparts, e.g., with superconducting electronic technology it should be 

feasible to place ultra-high-speed 

supercomputing capabilities onboard aircraft 

and space craft, a capability not feasible with 

semiconductor technology because of its large 

input power requirements (200 kilowatts) 

and associated massive cooling system requirements.

DoD programs in low temperature superconductivity research are coordinated 

through a wide number of intra-service and 

inter-departmental coordinating mechanisms, including working groups, annual 

program reviews, and special review panels. 

The coordinating vehicles help insure against 

duplication of effort and keep focus on topics 

of importance.
R e p o r t o f t h e P r e s id e n t t o t h e C o n g r e s s o n F e d e r a l P o lic ie s , B u d g e ts , a n d T e c h n ic a l A c t iv it ie s in

3.5.2 High Temperature Superconductivity. 

Future U.S. military electronics will require 

significant increases in signal processing capability as the number and accuracy of 

various sensors (infrared, acoustic, radar, 

etc.) exceeds the ability of existing signal 

processing hardware to translate this information in to usable form. To address this, 

DoD's first priority in high temperature superconductivity is the development of high 

temperature superconducting analog-todigital converters. These devices will be 

considerable faster than existing converters 

and will consume far less power. Also of 

high priority are various analog devices, 

particularly of the passive microwave type. 

These will be developed in the near-term and 

will probably be the first superconducting 

components utilized in military systems. 

Gyroscopes, accelerometers, digital devices 

and meters also have high research priority.

There are critical scientific problems, however, which may inhibit the realization of 

DoD research goals. These barriers are: (1) 

imperfect thin film deposition techniques, 

(2) lack of a superconductive transistor-like 

(or three-terminal) device, (3) inadequate 

material capabilities, and (4) incomplete understanding of the mechanism of high temperature superconductivity. DoD is well 

aware of these technical barriers and its 

program, by necessity, includes multiple 

contractors addressing each (particularly in 

film deposition and materials development).

DoD's program in high temperature superconductivity is focused at the Defense Advanced Research Projects Agency (DARPA). 

It addresses high temperature superconductors and is a technology-driven program 

rather than basic research. The program 

comprises three areas: (1) synthesis, processing and fabrication of materials, (2) precommercial manufacturing science issues, 

and (3) conceptual device development. Since 

high temperature superconducting materials are brittle ceramics, the first task is fabrication into engineering forms such as wires, 

coils, and thin films, each with optimized 

material properties (e.g., mechanical

strength). Manufacturing issues include understanding process control for reproducible quality and quantity of HTSC components, scale-up issues, and cost-effectiveness. 

Device demonstrations will provide data for 

checking improvements in system performance while development aspects are oriented toward near-term retrofit of present 

systems and longer term design of new HTSC 

devices that may require changes in present 

systems technology. The DARPA program 

is designed to develop technology for military 

systems, however, these technologies may 

have commercial applications.

3.6 The National Science Foundation 

Superconductivity Program

3.6.1 Solid State Physics. The National Science Foundation supports research to bring 

a wide variety of experimental techniques to 

the study of new high temperature superconductors. Areas of research focus include 

electronic and crystal structure, and electronic, magnetic, spectroscopic, and thermodynamic properties.

3.6.2 Solid State Chemistry. The NSF supports research to bring experience in chemistry to the synthesis of solid state oxide superconductors.

3.6.3 Low Temperature Physics Research in 

low temperature physics has long had superconductors as a focus. The NSF currently 

supports research on bulk properties, thin 

films, and superconducting devices.

3.6.4 Condensed Matter Theory. The NSF 

supports solid state theorists to develop 

models, computer simulations of physical 

behavior to understand physical limitations 

of superconductors such as critical temperatures and fields.

3.6.5 Metallurgy. The focus of NSF support 

in the area of metallurgy includes understanding of metallic and structural behavior 

of superconductors, and the microscopic 

behavior of superconducting properties.

3.6.6 Ceramics and Electronic Materials. 

Current high temperature superconductors

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are ceramics. This area of research seeks to 

expand knowledge of superconductor processing, modification, and synthesis and 

characterization of superconducting ceramic 

oxides.

3.6.7 Polymers. Research supported by NSF 

in this area involves the synthesis of polymeric 

superconductors.

3.6.8 Superconducting Applications. The 

NSF supports research leading to applications of both low temperature and high 

temperature superconductors. Research on 

high temperature superconductivity includes 

microwave and strip-line applications. 

Support is also provided for power applications.

3.7 National Aeronautics and Space 

Administration Superconducting 

Materials Program

The Office of Aeronautics and Space Technology (OAST) of the National Aeronautics and 

Space Administration (NASA) has instituted a 

program in high temperature superconductivity 

for applications in space and aeronautics. The 

program centers around four technology thrust 

areas:

I. Communication and Data Systems

H. Sensor and Cryogenic Systems

HI. Propulsion and Power Systems

IV. Space Materials Technology

The high-temperature superconductor program includes benefit studies of typical aerospace applications. The research is directed at 

characterization of new high-temperature superconducting materials for unique aeronautics 

and space applications including the effects of 

vacuum and space radiation. Selected thin film 

and bulk device research will be supported for 

the most promising aerospace applications 

identified from the applications studies in data, 

communications, sensors, cryogenics, propulsion, and power.

— 33 —

3.7.1 Communication and Data Systems. This 

technology thrust area is complimentary to 

an on-going base program in OAST in communications and data technology. Space 

data technology is key to the on-board processing of space generated data, which can 

exceed a gigabit per second. This massive 

computational rate is key to future NASA 

missions, such as the Mars Rover and Sample 

Return Mission, where some degree of autonomy is a critical mission requirement. In 

addition, space-based communication is 

critically important for both geostationaryto-geostationary,geostationary-to-low-earthorbit and deep-space-to geostationary missions. High speed microwave components 

and ultrastable oscillators are critical to enable these missions. The following is a partial list of areas of study, research, and development in this area:

o High speed switches 

o Ultrastable oscillators 

o Microwave components 

o Low noise receivers

3.7.2 Sensor and Cryogenic Systems. This 

technology thrust area is complimentary to 

an on-going base program in OAST in Sensor 

Technology whose main focus is remote 

sensing of galactic, planetary, and terrestrial 

phenomena. However, the HTS thrust covers this and in situ sensing applications for 

both space and aeronautics application areas. Cryogenic technology which revolves 

around the cooling of focal planes for the 

various remote observations instruments is 

key to future NASA missions, such as the 

Large Deployable Reflector, a 10 to 15 meter 

reflector for observations from the submillimeter to far infrared portions of the electromagnetic spectrum. The following is a partial list of areas of study, research, and development in this area:

o Accelerometers for space and 

o aeronautics applications 

o Magnetometers 

o Gyroscopes 

o Mixers 

o Local oscillators 

o Bolometers 

o Magnetic refrigeration
R eport of the P resid en t to the C o n g r e ss o n Federal P olicies, B u dg ets, a n d T ech nical A ctivities in

3.7.3 Propulsion and Power Systems. This 

technology area is complimentary to ongoing 

base programs in OAST in space power and 

propulsion technology. Propulsion technology is key to future NASA missions. The 

proposed manned mission to Mars and the 

return to the moon for a permanent manned 

station are just a few areas where this technology is a prerequisite. Space power technology is key to future NASA missions, such 

as the Mars Rover and Sample Return Mission, where the mission science requirements 

is heavily dependent on available power and 

storage. Concepts and technologies in these 

areas have obvious spinoffs in the aeronautics 

area. The following is a partial list of areas of 

study, research, and development in this area:

o Magnetic bearings 

o Magnetoplasmadynamic thrusters 

o Electromagnetic launchers 

o Energy storage 

o Power transmission

3.7.4 Space Materials Technology. This 

technology thrust area is directed toward 

developing materials or processes which will 

result in high-temperature superconducting 

materials which are stable in the space environment.

3.7.5 Low Temperature Superconductivity. 

Low-temperature superconductivity work 

includes device research utilizing superconducting insulating-superconducting (SIS) 

junctions for remote sensing applications, 

superconducting quantum interference devices (SQUIDS) for magnetic sensing and 

gravity gradiometer instrument applications, 

superconducting cavities for precise time and 

frequency determination, and magnets for 

detector applications.

3.8 Superconductor Research at the Department 

of Commerce

3.8.1 Introduction. The Department of 

Commerce carries out its superconductivity 

research at its National Institute of Standards 

and Technology (NIST). The technical program may be described in four parts as follows.

3.8.2 Superconductor Properties. Low temperature superconductors are already developed into engineering materials with 

several technically successful applications, 

but their characteristics present unique measurement problems that have been the subject of research at NIST for over two decades. 

These include the measurement of critical 

current and its variation with magnetic field, 

temperature, mechanical strain and other 

test conditions; the measurement of ac loss 

and other magnetic characteristics; the determination of the limits of stability; and the 

measurement of basic superconductor characteristics such as the energy gap, the isotope 

effect, etc. These measurement problems are 

of equal importance in ceramic and metal 

superconductors. Standards activities include technical contributions to the development standards adopted by the private 

sector, a standard reference material for 

critical current measurements, and international coordination.

3.8.3 Composition and Structure Analysis. 

Systematic development of ceramic high 

temperature superconductors must be 

guided by reliable determination of chemical composition and physical structure of 

test specimens. NIST has established a wide 

range of test facilities for this purpose. These 

include neutron scattering (both elastic and 

inelastic); x-ray diffraction (including a 

catalog of diffraction patterns); photoemission spectroscopy; micro-Raman spectroscopy; electron and ion microprobe analysis; 

neutron activation analysis; isotope dilution 

mass spectrometry; and ultrasonics. Applying all these techniques to one specimen 

enables a comprehensive analysis of structure and composition to be made at a wide 

range of scales.

3.8.4 Process Data. The design of fabrication 

processes for ceramics depends upon information relating process variables to product 

materials. Research to establish such data for 

the high temperature superconductors is in 

progress in NIST. This includes the establishment of phase equilibrium diagrams; devising and testing process conditions to

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promote grain orientation; preparation of 

starting materials in optimum form; and the 

establishment of processes to fabricate thin 

films of high quality.

3.8.5 Superconducting Electronics. There has 

been a program in superconducting electronics at NIST for over two decades, with 

the objective of developing the next generation of techniques, instrumentation, and 

physical standards for a variety of electrical 

and magnetic measurements. There is a 

fabrication facility for superconducting microcircuits that has produced SQUID magnetic detectors, an analog-to-digital converter, 

a fast counter, millimeter wave mixers, and a 

voltage measurement system that incorporates the basic national standard. All these 

are based on thin films of low temperature 

super-conductors and Josephson junctions. 

Present work includes further development 

of a power standard for infrared and microwave radiation based on a kinetic inductance 

bolometer. Research to extend the fabrication of microcircuits to high temperature 

superconductors is in progress. This includes 

the establishment of processes to fabricate 

high quality thin films and perform lithography. The greatest challenge is to fabricate 

reproducible Josephson junctions. Some 

progress has been made in this area.

4. Advanced Manufacturing Technologies

4.1 Introduction

Flexibility in manufacturing, especially the 

ability to make incremental improvements to 

products and process technologies, contributes 

to competitiveness. Various studies have documented the need for U.S. firms to improve in this 

area, relative to foreign competitors.

4.2 Introduction to the Technical Issue

Historically, manufacture and measurement 

have always been two separate processes. A 

machinist would cut a part on a milling machine 

and stop periodically to check dimensions with 

calipers and gauges. As manufacturing techniques became more and more efficient, the measurement part of the operation consumed an

ever-greater percentage of the total work required to produce a part. The development of 

automated "coordinate-measuring machines" 

(CMMs) in the 1970s helped somewhat, but 

measurement still used up about 50 percent of 

the total time required to produce a precision 

part.

It would be many times more efficient if the 

machining process could be made to produce 

accurate parts without being interrupted by the 

measuring process. Not only would it take less 

time, but fewer parts would have to be scrapped 

for being out-of-tolerance. (Some surveys have 

shown that in the U.S. one-third of the work force 

in manufacturing industries is engaged in rework; that is, correcting out-of-tolerance parts 

madeby the other two-thirds.) Research suggests 

that the problem can be solved by use of today's 

computer-controlled machine tools, because the 

position of the cutting edge of the tool is known 

and controlled at all times, at least in theory, by 

the computer. The computer can be programmed 

to compensate for known errors in the machine's 

movement, using sensors that feed back information on the machine's condition.

This concept of feedback and process control 

is being broadly applied in advanced manufacturing and affect materials handling, quality 

control, design, and support as well as fabrication. This trend stimulates the need for a variety 

of new technologies including robotics, sensors, 

and advanced control technology. Data handling and communication are also becoming 

more important in manufacturing.

Even for the largest firms the lack of agreedupon standards for "interfacing" complex 

equipment isa difficult—and costly—problem. 

Forclose to 90 percent of the discrete parts industry — about 100,000 firms — the problem is 

worse. These are much smaller companies (fewer 

than 50 employees) without great financial resources. Discrete parts producers, those who 

make products in small batches, are responsible 

for about 75 percent of the total U.S. trade in 

manufactured goods.

If they choose to automate, the smaller companies frequently prefer to buy automated machinery in stages, one or two machines at a time, 

and slowly build up to an integrated system. The

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effectiveness of this approach would be enhanced 

by the flexibility to buy from different manufacturers at different times with the assurance 

that the machines they buy will work together 

properly without expensive, custom-designed 

interfaces. This is the same flexibility that one 

can now find when buying the parts of a home 

stereo system from several different manufacturers, knowing that they will all plug together. 

These firms also would benefit from a system 

flexible enough to switch from the production of 

one part to another quickly and without expensive reprogramming.

4.3 Funding Levels for Advanced

Manufacturing Research and Development

The Federal funding for research and development in advanced manufacturing is summarized in Table 4.

TABLE 4. Funding of advanced manufacturing research and development (dollars in millions) by 

agency.

Agency 1988 1989 1990

Defense 154 170 173

Commerce 3 3 3

Total $157 $173 $176

The budget data collected for this report was

based on a unique set of definitions, a unique

process for data collection, and on the budget

projections during the 1989 fiscal year. For this

reason these numbers do not track with, nor

should they be compared to, the budget crosscuts which have been prepared for subsequent

budgets.

The budget numbers shown in this table do not

include funding for robotics, and therefore do

not show several agencies with which have

budgets in that area. The President's FY 91

budget request contains a complete crosscut on

robotics funding. A data collection for advanced

manufacturing, including robotics, is planned

for the President's FY 92 budget.

The agency programs are summarized in the 

following sections.

4.4 Department of Defense Advanced

Manufacturing Program

DoD established the DoD Manufacturing 

Technology Program (ManTech) in the late 1950's 

in response to a growing need for advanced 

production processes. Each military department 

has a mature ManTech program. The Defense 

Logistics Agency recently established one. Interorganizational coordination is accomplished via 

the Manufacturing Technology Advisory Group 

(MTAG). It consists of an executive committee 

and six technical committees which meet at 

various times throughout the year. Once a year, 

the MTAG holds a plenary meeting for the entire 

DoD ManTech community. Attendance has 

grown to over well over 600 (a high of 1100) 

during the past several years — two-thirds from 

the private sector. The meeting includes Service 

overviews, industry panels, and numerous 

technical sessions where the results of ManTech 

projects are discussed.

The ManTech program has produced many 

success stories. One example involves the development of a laser welder for producing tank 

engine components. The new welding process is 

more productive and produces higher quality 

welds than previous methods. It is estimated 

that the $1 million ManTech investment produced a cost avoidance of $3.5 million. Another 

project successfully established a more efficient 

method of producing gallium arsenide integrated 

circuit substrate material. It has been estimated 

that the new process paid for the ManTech investment in less than the first month of production. All three Military Departments are benefiting from this project.

ManTech's primary goal is to improve the 

productivity and responsiveness of the defense 

industrial base by engaging in initiatives which 

develop advanced manufacturing technology 

which will permit DoD and its contractors to 

produce DoD material more efficiently by using 

less production resources. While DoD invests in 

the establishment of advanced technology, DoD 

contractors normally are expected to invest in 

the capital equipment necessary to implement 

that technology.

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ManTech program results are distributed via 

numerous methods. Technical reports are distributed by the sponsoring organization and/or 

the contractor involved. The reports are also 

deposited centrally at the Defense Technical Information Center (DTIC) which provides secondary distribution. DTIC's services were augmented in June 1984 by the establishment of a 

Manufacturing Technology Information Analysis Center (MTIAC). MTIAC serves as a focal 

point for DoD's manufacturing technology information. It also answers queries on various 

technology subjects and prepares technical assessment reports such as: 1) higher order languages for robots; 2) artificial intelligence and 

expert systems applications in manufacturing; 

3) evaluation of finite capacity scheduling and 

simulation systems; and 4) automated inspection 

systems for flexible machining systems.

The ManTech Program uses other vehicles to 

distribute program results — one of the most 

effective means is the end-of-contract briefing. 

Many (about 100 per year) ManTech contracts 

require the performing organization to summarize the contract accomplishments for its peers. 

While attendance is by invitation only, the 

sponsoring agency will accommodate others if 

they have a valid reason to send a representative. 

These briefings give the attendees the opportunity to review the results first hand with the 

expectation that they will be applied to local 

problems.

Some ManTech funds are used internally in 

DoD activities but most of the nominally 200 

projects funded each year are awarded to private 

sector contractors.

The following is a partial list of DoD's planned 

FY90 ManTech investments.

4.4.1 Department of the Army.

FY1990:

o Initiate efforts to improve crystal growth 

and manufacturing capability for basic 

integrated circuit materials.

o Continue to develop alternate process to 

manufacture access and egress mats and

bridgedecks with smaller extrusions and

precision welding. Expand effort to enhance current production methods for 

medium duty landing mats and heavy 

duty membrane materials.

o Continue to develop production methods for heat stable enzymes used in detection devices for chemical and biological agents and toxins.

o Continue investigating gaps in precision 

gear manufacturing technology.

o Complete robotized wire harness effort 

with definition and specification of generic equipment for a variety of wire 

types and characteristics.

o Continue machine tool tasks on: improving product quality by computerizing inprocess tool wear monitoringand control; 

computerizing measurement ofproducf s 

surface finish, straightness, roundness, 

and cylindridty in order to map defect 

areas; and computerizing metal finishing bath process control in order to maintain correct chemical balance.

o Continue work on a variety of ammunition production investments such as: automatingstickpropellantblending; safely 

sampling nitroglycerine; mechanizing the 

assembly of mine clearing line charges; 

and automated testing of high volume 

production of infrared transducers for 

seeker type munitions.

o Enhance various technologies required 

to modernize/automate repair and rebuild of tactical vehicle engines.

4.4.2 Department of the Navy.

FY 1990:

o Utilize the Automated Manufacturing 

Research Facility (AMRF) to demonstrate 

the architecture and concepts necessary 

for the "seamless" processing of part 

description data through process planning, NC code generation, robot path 

creation, inspection plan generation, and 

material handling, 

o

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o Demonstrate the technology for quality 

control in the unmanned small batch size 

environment by developing technology 

for deterministic metrology.

o Demonstrate advanced casting technology for 16" and 5" projectiles.

o Initiate project to develop technology for 

refurbishment of engine parts (turbine 

blades/vanes and static components).

o Demonstrate improved manufacturing 

process for ausrolling gears.

o Develop technology for automated tape 

laying of complex shapes.

o Develop shape melting technology for 

fabrication of ship and submarine components.

o Develop improved manufacturing technology for thermoplastic secondary aircraft structures.

4.4.3 Department of the Air Force.

FY 1990:

o Complete financial support of the NationalCenterforManufacturingSdences.

o Continue work on produdbility of electronic subsystems, flexible micro-electronic manufacturing systems, and advanced radar modules.

o Continue efforts to implement advanced 

technologies in repair depots while continuing efforts on flexible repair center 

and Computer Aided Acquisition and 

Logistics Support

o Continue activities to provide economical manufacturingmethodsforcomposite 

airframe components.

o Complete development of computer integrated composites manufacturing center.

4.4.4 Defense Logistics Agency (DLA).

FY 1990:

o Continue work on establishing three 

apparel manufacturing research centers. 

Develop in-process quality control systems, computer simulation of apparel 

manufacturing models, ergonomic research, and real-time data collection.

o Establish advanced technology for combat rations manufacturing.

o Establish advanced technology for producing gears by initiating acquisition of 

equipment for "center for excellence" and 

begin work on spiral bevel gear cutting 

machine technology.

o Establish advanced technology for producing bearings by awarding contract 

for "centerof excellence" forbearing production.

o Initiate activities to establish DLA's Industrial Modernization Incentives Program through eight investments in 

bearing and apparel industries. InFY91 

begin application engineering for four 

factories of the eight factories.

Note: In addition to the ManTech program 

funding, many other DoD development programs produce advances in manufacturing that 

are targeted toward specific programs. The results, however, may be used in many other products as the techniques are disseminated through 

personal contacts, technical contacts, or conferences. There is no reliable way to estimate the 

manufacturing R&D funding attributable to such 

programs, but the total could easily exceed that 

in the ManTech Program.

4.5 Department of Commerce Advanced

Manufacturing Program

The core of the Department of Commerce's 

advanced manufacturing program is the Automated Manufacturing Research Facility (AMRF) 

at NIST. The AMRF is an engineering laboratory 

in the Center for Manufacturing Engineering at 

NIST. The facility provides a basic array of

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manufacturing equipment and systems—a "testbed"—that researchers from NIST, industrial 

firms, universities, and other government agencies can use to experiment with new standards 

and to study new methods of measurement and 

quality control for automated factories.

The AMRF includes several types of modem 

automated machine tools, such as numerically 

controlled milling machines and lathes, automated materials-handling equipment (to move 

parts, tools, and raw materials from one "workstation" to another), and a variety of industrial 

robots to tend the machine tools. The entire 

facility operates under computer control using 

an advanced control approach pioneered at NIST. 

The AMRF incorporates some of the most advanced, most flexible automated manufacturing 

techniques in the world.

NIST, as the nation's primary laboratory for 

measurement science and engineering, has two 

principal goals for its automated manufacturing 

program: to supply American industry with a 

radically new way of making precisely machined 

parts—with dimensions that can be referenced 

to national measurement standards maintained 

by NIST—and to encourage the modernization 

of American manufacturing by providing the 

technical information necessary to develop 

standardized "interfaces" between various types 

of equipment. NIST also is using this facility as 

a testbed for research on the next generation of 

"knowledge-based" manufacturing systems— 

automation systems that incorporate artificial 

intelligence capabilities.

The effective transfer of technical information requires standardization—standard procedures, standard protocols, standard interfaces. 

The challenge is to develop standards which 

support current technology and yet still encourage equipment manufacturers to develop new 

and innovative products. These are problems 

that NIST is solving in the AMRF.

Three industrial standards have already been 

developed based on NIST automation research. 

For example, a standard method for exchanging 

graphics data between otherwise incompatible 

computer-aided design (CAD) systems, developed by a govemment-industry coalition led by

NIST, was adopted by the American National 

Standards Institute (ANSI), a private voluntary 

standards organization. The standard now is 

supported by all U.S. CAD vendors which have 

at least a 1 % market share.

NIST has recently established the National 

PDES Test Bed at the AMRF to support industry 

and government projects in developing and 

testing the Product Definition Exchange Specification (PDES), the next generation of data interchange standards for automated manufacturing. Recent demands for solid modeling, 

configuration control, fully computer-interpretable data, and interactive access by cooperating 

users have led to the need for PDES, one of the 

most ambitious standards ever attempted.

Implementing the new standard currently 

under development by voluntary standards organizations, industry, and government still requires serious technical effort. Implementations 

must be tested as they are built to uncover 

problems and inconsistencies in the various 

definitions.

Experienced researchers working in a testbed 

environment such as the AMRF can identify 

potential problems and suggest clarifications and 

interpretations of the standard. Work in the 

AMRF on manufacturing data preparation has 

already developed a product part model which 

is consistent with the expected PDES standard. 

AMRF researchers are testing to determine the 

effectiveness of this part model as the information needed by the manufacturing applications 

in the facility. As PDES is developed, this effort 

will be expanded.

AMRF research also led to standards for the 

characterization of computerized coordinate 

measurement machines, and for a method of 

surface texture measurement. Seven other potential standards are now being considered by 

various industrial standards groups.

The AMRF is a unique government facility 

for many reasons, including:

o Its location at the National Institute of 

Standards and Technology. As an open 

federal laboratory with no commercial 

interests, NIST can make this facility ac-

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cessible to private firms interested in automation research—firms that individually could not afford such a complex 

research facility. NIST has a long history 

of working with private firms and organizations to develop standards and measurement and test methods that benefit 

the entire industry.

o The active participation in the AMRF by 

industry, universities, and other government agencies. The AMRF has become a focal point for interactions among 

all American researchers in automated 

manufacturing.

o Theuseofawidevarietyofcommercially 

available machine tools and robots. This 

is a direct result of the NIST decision to 

study the most practical, incremental 

route to automation for the small- to 

medium-sized firm; it is an approach that 

has never been used before.

o The flexibility of the system. One of the 

goals of the AMRF is to create a facility 

that is, in the jargon of the researchers, 

"data driven"—the actions of the various 

machines and robots should be determined primarily, or solely, by a computerized description of the part to be manufactured. This stands in contrast to 

modem "flexible manufacturing" cells 

which are truly flexible only for a limited 

"family" of parts for which the machine 

tools are programmed.

o Sensory interaction. The AMRF makes 

use of an unusually versatile robot control system in which sensory information 

from, for example, the NIST robot vision 

system is fed back to the controller to 

provide a basis for its decisions. This is 

important because it enables the system 

to react to its environment, eliminating 

the need for a lot of rigid programming.

o The scope of the facility. Research at the 

AMRF covers everything from the 

preparation of data on a new part to final 

automated inspection.

The AMRF is not a prototype of the 

"factory of the future." It is extremely 

unlikely that any actual factory would 

resemble the AMRF, at least physically. 

The AMRF is a laboratory for studying 

factory automation. Further, the AMRF 

is not a demonstration project. Although 

it does demonstrate several new and 

potentially important techniques for 

machine control and the integration of 

diverse systems, the AMRF is not a museum piece but rather a working research 

facility.

In addition to NIST funding, the Navy's 

Manufacturing Technology Program is a 

major source of support. Private firms 

and universities also contribute to AMRF 

research through the donation or loan of 

equipment or by providing personnel 

through the NIST Research Associate 

Program.

The Research Associate Program is also 

one of the ways that NIST research results are transferred out of the AMRF. 

Another approach to transferring this 

technology is through the establishment 

of the Manufacturing Technology Centers Program at NIST. The objective of 

this program is to accelerate the transfer 

of advanced manufacturing technology 

to small- and medium-sized U.S. businesses to assist these firms in improving 

their manufacturing and process capabilitiesandmarketcompetitiveness. Each 

center will apply advanced manufacturing techniques to the needs of manufacturers located within its region. The advanced technologies transferred will 

emphasize thosedevelopedatthe AMRF. 

Each center is expected to communicate 

its experience to all interested parties.

While research is the focus of the AMRF, 

the transfer of advanced manufacturing 

technology is the primary task of the 

Manufacturing Centers Program. Activities of each center are expected to 

include: 1) informing and educating the 

industrial firms in its region about ad-

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vanced manufacturing techniques; 2) 

demonstrating the applicability of advanced technology to these firms; 3) actively assisting firms in evaluating their 

requirements; 4) assisting with the 

implementation of desired applications; 

5) supporting work-force training and 

retraining; and 6) communicating technology transfer experiences to a wide 

national audience.

One aspect of this new program is that it 

represents the first time the federal government explicitly attempted to establish 

an intermediary between the federal 

laboratories that perform research and 

development in new technological areas 

and the small- and medium-sized manufacturing firms that hope to benefit from 

the availability of this technology.

NIST's successes in transferring technology have generally been a result of cooperative research agreements in which 

private sector personnel spend up to a 

year workingside-by-side withNIST staff 

solving some problem of mutual interest. 

Some of these agreements also entail a 

donation of some piece of equipment to 

theAMRF. In these cases, the research 

program will typically involve incorporating the equipment into theAMRF. At 

the end of these cooperative research 

programs, the visiting staff return to their 

organizations, taking with them the 

knowledge of advanced manufacturing 

techniques developed in the AMRF.

This technology transfer process has 

worked well for NIST over the years. 

Unfortunatelyitonlyworkswellforlarge 

firms, with a large enough staff that they 

can afford to send one or two staff 

members to NIST for an extended period 

of time. Obviously, this is not the case for 

most of the small- and medium-sized

manufacturing firms in this country. This

is the motivation for the establishment of 

regional centers—to serve the needs of 

the manufacturing firms in their region 

by working closely with them to identify

technologicalimprovements thatcanhelp 

these firms improve productivity. These 

centers must serve as more than just 

brokers, however. It is also their responsibility to help increase the flow of technology out of federal laboratories by 

identifying technologies that can benefit 

industry, and where necessary, extracting 

that technology, refining it, packaging it, 

fine tuning it, and otherwise making it 

available and useable to the general 

public. This step is important because it 

is not the mission of the federal laboratories, including NIST, to engage in product development. This manufacturing 

Technology Centers Program at NIST is 

unique. ItbuildsontheresourcesofNIST 

and other laboratories while establishing 

a mechanism to combine the push of ne w 

technology development with the pull of 

manufacturing competition for 

marketshare.

Three organizations have been selected 

to become the first NIST Regional Manufacturing Technology Centers: The 

ManufacturingTechnology Center at the 

Cleveland Advanced Manufacturing 

Program in Cleveland, Ohio; The 

Northeast Manufacturing Technology 

Center at Rensselaer Polytechnic Institute in Troy, New York; and The South 

Carolina Technology Transfer Cooperative based at the University of South 

Carolina in Columbia, South Carolina. 

NIST has established cooperative working arrangements with each of these organizations.

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